US media persona and former Olympian Caitlyn Jenner has escaped a class-action lawsuit after a federal choose dominated her memecoin was not a safety below US legislation.
California federal choose Stanley Blumenfeld Jr. wrote in an order on Thursday that the lawsuit didn’t plausibly plead that Caitlyn Jenner (JENNER) tokens have been funding contracts, as they didn’t pool investor cash or use funds to develop “any associated product or know-how.”
“Defendants said that ‘[t]he $JENNER token is a memecoin on the Ethereum blockchain meant solely for leisure functions,’ and that its worth would enhance as a result of Jenner would use her fame and affect to put it on the market, growing demand,” the order mentioned.
“Promotion alone, nevertheless, doesn’t set up a typical enterprise absent pooling or a construction linking investor fortunes,” it added.
A bunch of JENNER memecoin patrons first sued Jenner and her late supervisor, Sophia Hutchins, in November 2024, claiming they misplaced hundreds of {dollars} because the token’s worth collapsed and that JENNER was an unregistered securities providing.
Blumenfeld tossed the go well with in Could 2025 for failure to state a declare, and the group filed an amended criticism later that very same month, led by Lee Greenfield, a UK citizen who claimed he misplaced greater than $40,000 investing in JENNER.
The amended criticism had argued that traders had pooled their property as Jenner promised that when the token reached a market worth of $50 million, a 3% transaction charge would fund token buybacks, advertising and marketing, donations to Donald Trump’s presidential marketing campaign and a token for possession in Jenner’s Olympic gold medal.
Blumenfeld wrote that the amended criticism closely targeted on deliberate donations to Trump, however didn’t clarify how traders believed that doing so would supply a monetary return to them.
“Neither is it clear that the alleged plan to distribute fractionalized possession pursuits in Jenner’s gold medal has any bearing on Greenfield’s declare, for the reason that plan was not introduced till August 2024—after the final of his purchases—and was by no means executed,” he added.
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Blumenfeld denied permitting the category group one other likelihood to amend the lawsuit and added that claims relating to contracts and customary legislation fraud below California legislation have been finest despatched to state court docket.
JENNER was first launched on the Solana blockchain by way of the memecoin creator Pump.enjoyable in Could 2024. It was quickly embroiled in controversy after Jenner and different memecoin launching celebrities claimed they have been scammed by Sahil Arora, a claimed collaborator on the tokens.
Jenner relaunched the token on Ethereum, which traders claimed diminished the worth of the unique Solana token. The token has since basically misplaced all of its worth after hitting a peak worth of practically $7.5 million in June 2024.
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