Source: Cointelegraph
Original: “Caitlyn Jenner Memecoin Buyers Regroup After Judge Dismisses Lawsuit”

Lawyers representing the group of Caitlyn Jenner Memecoin buyers stated that they will continue their legal battle against the former Olympic athlete, after a judge dismissed the case due to the plaintiffs' failure to adequately substantiate claims of securities violations and fraud.

Jenner successfully escaped a class-action lawsuit filed by buyers of the memecoin named after her, Caitlyn Jenner (JENNER). California District Court Judge Stanley Blumenfeld Jr. noted in a ruling submitted on May 9 that "all nine causes of action are sufficiently found to be defective," and supported Jenner's request for a complete dismissal of the lawsuit on the grounds that the plaintiffs failed to present valid claims.

The judge allowed the plaintiff group to amend their complaint, requiring submission by May 23, but warned that the amended complaint must be "more focused and carefully worded than the original complaint."

Jack Fitzgerald, a partner at Fitzgerald Monroe Flynn PC representing the plaintiff group, told Cointelegraph that they are "pleased the court recognized that we may be able to assert certain claims against the defendants and plan to amend the complaint to move the case forward."

Jenner and her manager Sophia Hutchins were sued last November by a group of investors who purchased JENNER tokens, accusing them of "fraudulently soliciting financially immature investors" to buy the token, with the plaintiffs claiming that the token is an unregistered security.

UK citizen Lee Greenfield was named as the lead plaintiff in January, claiming to have lost over $40,000 from purchasing JENNER. However, the court initially found that the claims of securities law violations could not stand because the plaintiffs failed to specify that their JENNER purchases occurred in the United States (as required by law), and the details provided about these transactions were "extremely sparse."

The court did not allow the plaintiff group to replace their lead plaintiff with a domestic member and required them to report by May 16 on how the lawsuit would proceed (highlight added for emphasis). Source: PACER

Overall, Judge Blumenfeld dismissed eight additional claims made in the amended complaint submitted by the class-action plaintiffs in February, which included allegations of misleading statements made by Jenner and Hutchins, selling unregistered securities, or engaging in various fraudulent activities.

Judge Blumenfeld pointed out that the plaintiffs failed to prove that Jenner sold tokens through a prospectus containing false statements, as "Greenfield has admitted that the $JENNER tokens were not sold through a prospectus."

The court also dismissed common law fraud claims, stating that the plaintiffs only mentioned issues of information omission and Jenner's statements on the X platform about "continuing to support these tokens," but did not clearly specify which particular statements were related to the fraud claims.

The plaintiffs also accused Hutchins of assisting and enabling Jenner's alleged fraudulent activities, but Judge Blumenfeld ruled that this claim was unfounded, as the complaint "failed to adequately prove any credible fraud allegations."

In a footnote, Judge Blumenfeld noted that there is a dispute between Jenner and the class-action plaintiffs regarding whether the JENNER tokens constitute securities, but he would not make a ruling at this stage because "the securities-related claims have been dismissed for other reasons."

"Since determining whether the tokens are securities requires a factual inquiry and may be affected by the amended complaint, the court will not resolve this issue at this time, assuming without making a final ruling that these tokens are subject to federal securities law," the judge wrote in the ruling.

The JENNER token was initially launched in May 2024 on the Solana blockchain through Pump.fun but quickly became embroiled in controversy, with Jenner and other celebrities issuing memecoins claiming that partner Sahil Arora defrauded them.

Jenner subsequently reissued the token on the Ethereum blockchain, with the class-action plaintiffs claiming that this action caused the value of the original Solana version of the token to plummet, while allowing Jenner to collect a 3% fee on each transaction.

Since its launch, the JENNER token has essentially lost all its value. According to CoinGecko, its market cap has dropped from a peak of nearly $7.5 million on June 3 to about $58,775. The token's trading volume in the past 24 hours was only $61.10.

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