Judge Dismisses Jenner Memecoin Lawsuit, Allows Amended Suit

Caitlyn Jenner memecoin buyers are regrouping after a judge dismissed their lawsuit against the former Olympian. The lawsuit, which was filed in November, accused Jenner and her manager, Sophia Hutchins, of fraudulently soliciting financially unsophisticated investors to buy the JENNER token, which the plaintiffs alleged was an unregistered security. The court, however, found that the claims of securities law violations couldn't stand as it wasn't alleged that the purchases took place in the US, as required by law. Additionally, the court found that the complaint lacked sufficient details about the purchases.

The judge allowed the class group to amend its suit, which must be filed by May 23, but warned that it must be more focused and judiciously pleaded than the original. A lawyer for the class group, Jack Fitzgerald, expressed satisfaction with the court's decision, stating that they intend to amend and press forward with the case. The court also dismissed a further eight claims the class group brought in an amended complaint filed in February, which included accusations that Jenner and Hutchins either made misleading statements, sold unregistered securities, or committed various fraud.

The court found that the suit failed to allege that Jenner sold the token through a prospectus that contained an untrue statement, as the lead plaintiff, Lee Greenfield, admitted that the JENNER tokens were not sold through a prospectus. The court also tossed a common-law fraud accusation, saying the complaint alleged omitted information and noted various X posts by Jenner stating that she would continue to support the tokens, but it did not identify which of the statements related to the fraud claim. The group also accused Hutchins of aiding and abetting Jenner’s allegedly fraudulent conduct, but the judge said that claim failed as the complaint “does not adequately allege any viable fraud claim.”

JENNER first launched in May 2024 via Pump.fun on the Solana blockchain but was soon embroiled in controversy after Jenner and other memecoin launching celebrities claimed collaborator Sahil Arora scammed them. Jenner relaunched the token on Ethereum, which the class group claimed tanked the value of the original Solana token, but gave Jenner the benefit of collecting a 3% fee on every transaction. The token has lost essentially all its value since launch, with its market value crashing to around $58,775 from a June 3 peak of nearly $7.5 million.

This legal battle highlights the complexities and risks associated with memecoins and the importance of clear and transparent communication in the cryptocurrency market. The dismissal of the lawsuit does not necessarily mean the end of the legal fight, as the class group has been given the opportunity to amend its suit and press forward with the case. The outcome of this case could have significant implications for the regulation and oversight of memecoins and other cryptocurrencies in the future.