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The Coin Rise 2025-05-13 11:43:09

Caitlyn Jenner Beats Memecoin Lawsuit—Buyers Plan to Amend and Refile

Caitlyn Jenner Beats Memecoin Lawsuit—Buyers Plan to Amend and Refile

Caitlyn Jenner has temporarily escaped a class-action lawsuit from a group of investors in her now-infamous JENNER memecoin, after a U.S. federal judge dismissed the case on May 9 for failing to provide sufficient legal grounds. However, the group’s legal team has pledged to revise and refile the lawsuit by the court’s May 23 deadline. California District Court Judge Stanley Blumenfeld Jr. ruled that all nine claims—including securities violations and fraud—were “deficient,” citing vague arguments and a lack of concrete details about token purchases. Lead plaintiff Lee Greenfield, a UK citizen who claimed losses of over $40,000, failed to establish that his token transactions occurred within U.S. jurisdiction, weakening the case’s foundation under federal securities laws. Despite the dismissal, Judge Blumenfeld granted the plaintiffs permission to amend the complaint , though he cautioned the new filing must be “more focused and judiciously pleaded.” Room for Lawsuit Refile The plaintiffs initially accused Jenner and her manager Sophia Hutchins of fraudulently promoting memecoins to “financially unsophisticated investors.” They alleged misleading social media statements and a failure to disclose key details about the token’s structure and risks. However, the court found that the complaint failed to link any specific promotional statements to fraudulent intent. Additionally, the judge rejected claims that Jenner violated securities laws by selling unregistered securities through a prospectus. As the complaint itself acknowledged, no prospectus was involved in the token sale. Allegations of common-law fraud also failed due to a lack of direct misstatements or omissions tied to the token’s promotion. Importantly, the court did not rule on whether the JENNER token is a security under U.S. law, noting that decision would require more factual development—possibly in the amended complaint. JENNER Collapse Undermines Investor Trust JENNER launched on the Solana blockchain in May 2024 via Pump.fun but quickly courted controversy. Jenner claimed she had been deceived by known memecoin collaborator Sahil Arora, prompting a relaunch of the token on Ethereum. The plaintiffs argue this switch wiped out the original token’s value, while the celebrity collected a 3% fee from Ethereum-based transactions. Since its brief moment of hype, the token has all but vanished from the market. According to CoinMarketCap, JENNER’s market cap has plummeted from a peak of nearly $7.5 million in June 2024 to just $58,775 today. Trading volume has dropped to a mere $61.10 in the last 24 hours, underscoring the token’s dramatic fall from grace . The post Caitlyn Jenner Beats Memecoin Lawsuit—Buyers Plan to Amend and Refile appeared first on TheCoinrise.com .

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