Pump Fun Fortifies Legal Defense Against Class Action Lawsuit

Pump Fun, a memecoin platform, is fortifying its legal defense in response to a class action lawsuit filed by Burwick Law. The lawsuit alleges that Pump Fun raised millions through the sale of unregistered securities and failed to implement adequate compliance measures, exposing the platform to risks such as money laundering and transnational criminal activity.

In a strategic move, Baton Corporation, the parent company of Pump Fun, has appointed Brown Rudnick attorneys Daniel L. Sachs and Kyle P. Dorso to bolster its legal team. Sachs, who previously served as counsel at the U.S. Securities and Exchange Commission, has extensive experience in securities fraud investigations. His notable cases include defending Shaquille O’Neal in an NFT class action and representing Mark Cuban in a Voyager Digital-related lawsuit. Dorso, on the other hand, brings expertise in commercial litigation and cryptocurrency disputes, having played a key role in helping Atomic Wallet dismiss a lawsuit connected to a $100 million hack.

The legal team is led by Stephen D. Palley, chair of Brown Rudnick’s Digital Commerce Group, who has a long-standing reputation in insurance and crypto litigation. Palley’s portfolio includes advising clients such as Hector DAO and protocol developers, as well as working with crypto derivatives platforms, NFT investors, and wallet providers.

The lawsuit, which is still in its early stages, seeks a jury trial and involves high-profile legal representation on both sides. Burwick Law, represented by founder Max Burwick and co-counsel Wolf Popper, is pursuing the case on behalf of Kendall Carnahan and several other plaintiffs. The class action names Pump Fun as a central figure in a larger pattern of alleged “pump and dump” token activity.

Burwick Law has been actively involved in multiple legal actions targeting crypto tokens created through Pump Fun’s platform. The firm faced criticism from the memecoin community after publicizing the lawsuit on the same day Pump Fun’s X account was suspended. Despite the public scrutiny, Burwick Law remains committed to seeking a jury trial, though no court date has been set.

Pump Fun’s founding team, including Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale, did not secure formal legal counsel until April 7, 2025, just one day before their response deadline. This late appointment of legal representation forced them to request an extension to meet court requirements, highlighting the urgency and complexity of the case.

As the legal battle unfolds, both sides are preparing for a high-stakes trial that could set precedents for the regulation and compliance of memecoin platforms. The outcome of this case will not only impact Pump Fun but also the broader cryptocurrency community, as it addresses critical issues related to securities laws and compliance measures in the digital asset space.