A US federal judge has dismissed a class-action lawsuit linked to a memecoin promoted by Caitlyn Jenner.
Summary
- US judge ruled Caitlyn Jenner memecoin did not qualify as security under investment contract standards.
- Court said investors failed to prove pooled funds or structured financial returns linked to token.
- Lawsuit claims involving token promotions and donations were rejected and case dismissed from federal court.
The court found that the claims did not meet the legal standard required to classify the token as a security under US law.
Judge Stanley Blumenfeld Jr. stated that the complaint failed to show that the token functioned as an investment contract. He noted that there was no clear evidence of pooled investor funds or structured returns tied to shared efforts. The ruling stated that “promotion alone, however, does not establish a common enterprise.”
The case began when a group of investors filed a lawsuit in November 2024. They claimed they suffered financial losses after the token’s value dropped sharply. The plaintiffs argued that the token was an unregistered securities offering.
An amended complaint followed in May 2025. It included claims that investors contributed funds with expectations tied to future actions. These included token buybacks, marketing efforts, and other planned uses. However, the court found that these claims did not clearly show how investors would gain financial returns.
Moreover, the amended complaint focused on several proposed uses of funds. These included donations and plans for fractional ownership linked to Jenner’s Olympic gold medal. The judge stated that these claims lacked clear connections to investor benefits.
The ruling noted that some of these plans were introduced after certain investors had already purchased the token. It also pointed out that some proposals were never carried out. The court stated that these details did not support the claim of a structured investment arrangement.
Background of Token Launch and Controversy
The JENNER token was launched in May 2024 and later moved from one blockchain to another. This change became part of the dispute, as some investors said it affected the token’s value.
The project also faced controversy linked to alleged issues with collaborators. Over time, the token’s market value declined from its earlier peak. The judge denied further amendments to the lawsuit and directed related claims to state court for review.