The lawyer for a group of Caitlyn Jenner memecoin buyers said they will continue their legal fight against the ex-Olympian after a judge threw out the case for failing to adequately support the securities and fraud claims it brought.<\/p>\n
Jenner had escaped a class-action lawsuit from buyers of her self-titled memecoin, Caitlyn Jenner (JENNER) after California District Court Judge Stanley Blumenfeld Jr. said in a motion filed on May 9 that it was \u201csufficient to conclude that all nine causes of action are deficient\u201d and sided with Jenner in dismissing the suit in its entirety for failure to state a claim.<\/p>\n
He allowed the class group to amend its suit, which must be filed by May 23, but warned it had \u201cto be more focused and judiciously pleaded\u201d than the original.<\/p>\n
A lawyer for the class group, Fitzgerald Monroe Flynn PC partner Jack Fitzgerald, told Cointelegraph it was \u201cpleased the Court recognized we may be able to state some claims against the defendants, and intend to amend and press forward with the case.\u201d<\/p>\n
Jenner and her manager, Sophia Hutchins, were sued in November<\/a> by a group that bought the JENNER token and accused them of having \u201cfraudulently solicited financially unsophisticated investors\u201d to the token, which they alleged was an unregistered security.<\/p>\n Lee Greenfield, a UK citizen, was added as the lead plaintiff in January and claimed he lost over $40,000 buying JENNER. But the court found, for a start, that claims of securities law violations couldn\u2019t stand as it wasn\u2019t alleged that his JENNER buys took place in the US, as the law requires, and gave \u201cscant details\u201d about the purchases.<\/p>\n The court didn\u2019t allow the class to swap its lead for a US-based member, adding it must report by May 16 on how the suit will proceed (highlights added for emphasis). Source: PACER<\/em><\/p>\n In all, Judge Blumenfeld dismissed a further eight claims the class group brought in an amended complaint filed<\/a> in February, which included accusations that Jenner and Hutchins either made misleading statements, sold unregistered securities, or committed various fraud.<\/p>\n Judge Blumenfeld said the suit failed to allege that Jenner sold the token through a prospectus that contained an untrue statement, as \u201cGreenfield admits that the $JENNER tokens were not sold through a prospectus.\u201d<\/p>\n The court also tossed a common-law fraud accusation, saying the complaint alleged omitted information and noted various X posts by Jenner \u201cstating that she would continue to support the tokens,\u201d but it did not identify which of the statements related to the fraud claim.<\/p>\n The group also accused Hutchins of aiding and abetting Jenner\u2019s allegedly fraudulent conduct, but Judge Blumenfeld said that claim failed as the complaint \u201cdoes not adequately allege any viable fraud claim.\u201d<\/p>\n In a footnote, Judge Blumenfeld said Jenner and the class group disputed whether the JENNER token was a security, but he was not going to decide at this stage as the \u201csecurities claims fail on other grounds.\u201d<\/p>\n Related: <\/strong><\/em>Top TRUMP whales hold $174M in tokens ahead of dinner with US president<\/strong><\/em><\/a>\u00a0<\/p>\n \u201cBecause the determination of whether the tokens are securities is fact-dependent and may be affected by an amended pleading, the Court declines to resolve that issue at this stage and instead assumes without deciding that the tokens are securities subject to the federal securities laws,\u201d he wrote.<\/p>\n JENNER first launched in May 2024 via Pump.fun<\/a> on the Solana blockchain but was soon embroiled in controversy<\/a> after Jenner and other memecoin launching celebrities claimed collaborator Sahil Arora scammed them.\u00a0<\/p>\n Jenner relaunched the token on Ethereum, which the class group claimed tanked the value of the original Solana token, but gave Jenner the benefit of collecting a 3% fee on every transaction.<\/p>\n JENNER has lost essentially all its value since launch. CoinGecko shows<\/a> its market value has crashed to around $58,775 from a June 3 peak of nearly $7.5 million. The token has seen just $61.10 worth of trading volume over the last day.<\/p>\nCourt dismisses all claims by JENNER tokenholders<\/h2>\n