Federal Judge Dismisses Class-Action Lawsuit Against Caitlyn Jenner's Memecoin

Judge Stanley Blumenfeld Jr. has dismissed a class-action lawsuit alleging that Caitlyn Jenner's $JENNER memecoin was an unregistered security. In his ruling, the judge stated that the plaintiffs failed to plausibly demonstrate that the tokens constituted investment contracts, noting a lack of pooled investor funds used for the development of a related product or technology. The legal challenge was initiated in November 2024 by a group of buyers, including UK citizen Lee Greenfield, who claimed losses of over $40,000. The plaintiffs argued that the token's structure, including proposed transaction fees for buybacks and donations to Donald Trump's presidential campaign, created an expectation of profit. However, the court found that promotion by a celebrity does not inherently establish a 'common enterprise' without a formal structure linking investor fortunes. Judge Blumenfeld specifically noted that the plaintiffs did not explain how political donations would provide a financial return to token holders. Furthermore, a plan to offer fractionalized ownership of Jenner's Olympic gold medal was dismissed as irrelevant, as it was announced after the lead plaintiff had completed his purchases. Originally launched on the Solana blockchain via Pump.fun in May 2024 before being relaunched on Ethereum, the $JENNER token experienced extreme volatility. After reaching a peak valuation of nearly $7.5 million in June 2024, the asset has since lost nearly all of its market value. The ruling provides a narrow legal victory for Jenner, emphasizing the distinction between celebrity promotion and the legal definition of a security.