Caitlyn Jenner memecoin buyers to regroup after judge tosses suit

A California court dismissed a class-action lawsuit against Caitlyn Jenner and her manager, Sophia Hutchins, regarding their Caitlyn Jenner (JENNER) memecoin. Judge Stanley Blumenfeld Jr. found the plaintiffs’ claims deficient, citing inadequate support for securities and fraud allegations. While dismissing the suit, the judge allowed the plaintiffs to amend their complaint by May 23rd, urging a more focused approach.

The original suit, filed in November 2024, accused Jenner and Hutchins of fraudulently soliciting investors for the JENNER token, alleging it was an unregistered security. Lee Greenfield, the lead plaintiff, a UK citizen, claimed over $40,000 in losses. However, the court found the securities law violations claim flawed because the alleged purchases didn’t occur in the US, a legal requirement. The court also rejected a request to replace Greenfield with a US-based plaintiff.

The February amended complaint included further claims of misleading statements, unregistered securities sales, and various fraud accusations against both Jenner and Hutchins. Judge Blumenfeld dismissed these, stating the suit failed to demonstrate that Jenner sold tokens via a prospectus containing false statements, and that the complaint lacked sufficient detail to support the common-law fraud claim, despite referencing Jenner’s X posts expressing continued support for the token. The claim against Hutchins for aiding and abetting Jenner’s alleged fraudulent conduct also failed due to the lack of a viable underlying fraud claim.

Although the court acknowledged a dispute over whether the JENNER token constituted a security, Judge Blumenfeld decided not to address this at this stage, given the failure of the securities claims on other grounds. He proceeded by assuming, without deciding, that the tokens were securities subject to federal securities laws for the purpose of this ruling.

The JENNER token, initially launched on Solana in May 2024 via Pump.fun, later moved to Ethereum after controversy surrounding collaborator Sahil Arora. The class action alleged that this move damaged the original Solana token’s value while allowing Jenner to collect a 3% transaction fee. Since its launch, the JENNER token has dramatically lost value, plummeting from a peak of nearly $7.5 million to around $58,775, with minimal daily trading volume. The plaintiffs’ legal team, however, intends to amend their complaint and continue their legal fight.