JENNER Coin Lawsuit Rejected, But Buyers Insist

After a judge dismissed the case on allegations of fraud and securities not sufficiently proven, a lawyer representing a group of buyers of Caitlyn Jenner's memecoin said the group intends to continue pursuing the legal battle against the former Olympian.

On 9 May, Judge Stanley Blumenfeld Jr. of the California District Court ruled in an order that "it is sufficient to conclude that all nine grounds for the action are deficient". As a result, Jenner was relieved of a class action lawsuit brought by purchasers of her namesake memecoin, Caitlyn Jenner (JENNER). The judge dismissed the lawsuit completely for lack of merit.

The group has until 23 May to file a new complaint. The judge allowed the changes, but warned that the new version would have to be "more focused and well-supported" than the original.

"I am pleased that the court has recognised that we have some allegations to make against the defendants and intends to proceed with an amended complaint," said Jack Fitzgerald, a partner at the law firm Fitzgerald Monroe Flynn PC and counsel for the group.

In November, Jenner and its manager Sophia Hutchins were sued by a group of JENNER token purchasers, who accused them of "fraudulently soliciting financially inexperienced investors" for a token believed to be an unregistered security.

In January, Lee Greenfield, a British citizen, was added as lead plaintiff, who claimed to have lost more than $40,000 by purchasing JENNER. However, the court ruled that the allegations related to securities laws could not be upheld, as Greenfield had failed to allege that his JENNER purchases took place in the US, as required by law, and had provided "few details" about the transactions.

In addition to forcing Greenfield to file a status report on the complaint by 16 May, the court rejected the group's request to replace the leader with a member residing in the US.

The Tribunal Rejects All Accusations of Token Jenner Buyers

The group filed an amended complaint in February, alleging that Jenner and Hutchins had committed numerous frauds, offered unregistered securities and made misleading statements. Judge Blumenfeld dismissed a total of eight other allegations.

According to the judge, the case did not allege that Jenner offered the token through a prospectus containing misleading statements, because "Greenfield admits that the JENNER tokens were not sold through a prospectus."

The common law fraud charge was also dismissed, as the complaint allegedly omitted relevant information and cited other posts on X by Jenner "in which he states that he will continue to support the tokens," but without specifying which of those posts were relevant to the charge.

Judge Blumenfeld also dismissed the group's allegation that Hutchins contributed to Jenner's alleged fraudulent behaviour, saying that the complaint "fails to make a defensible allegation of fraud".

In a footnote, the judge said that although Jenner and the group were discussing whether the JENNER token fell within the definition of a financial security, he did not intend to rule on the matter at this stage, as "the securities allegations have been dismissed on other grounds".

He added: "The court refrains from ruling on this point and assumes, without deciding, that the tokens are securities subject to federal regulation, as the determination depends on the facts and could be affected by the amended application."

The JENNER token was first launched in May 2024 on Pump.fun on the Solana blockchain, but soon ended up at the centre of controversy after Jenner and other celebrated memecoin promoters accused co-creator Sahil Arora of misleading them.

The organisation claims that the token's relaunch on Ethereum reduced the value of the original token on Solana, but also allowed Jenner to collect a 3% commission on each transaction.

Since its release, JENNER has lost almost all of its value. According to CoinGecko, its market value peaked at around $7.5 million on 3 June, then dropped to around $58,775. In the past 24 hours, the token's trading volume has been only $61.10.