Caitlyn Jenner Meme Coin Lawsuit Dismissed on Jurisdictional Grounds, Plaintiffs Plan to Regroup

TLDRCalifornia federal judge dismissed class action lawsuit against Caitlyn Jenner over meme coin fraud allegationsLead plaintiff Lee Greenfield, a British investor who lost over $40,000, failed to show purchases occurred in U.S. jurisdictionJenner launched tokens on both Solana and Ethereum platforms, allegedly causing the first to lose valueJudge gave plaintiffs until May 23 to file amended complaint with better evidenceJENNER token has crashed from $7.5 million peak value to around $58,775A California federal judge has dismissed a class action lawsuit against Caitlyn Jenner and her business partner Sophia Hutchins over allegations of cryptocurrency fraud. U.S. District Judge Stanley Blumenfeld Jr. ruled that the case lacked proper U.S. jurisdiction but left the door open for plaintiffs to file an amended complaint.The lawsuit, led by British investor Lee Greenfield who claims to have lost over $40,000, alleged that Jenner misled investors through her promotion and management of tokens bearing her name.According to court documents reviewed by Decrypt, the judge determined that without clear evidence showing the token purchases were made in the United States, the court could not “reasonably infer” that Jenner “incurred irrevocable liability” under U.S. securities laws.The Controversial Token LaunchThe legal dispute stems from Jenner’s cryptocurrency ventures launched in May 2024. Greenfield’s lawsuit claimed that Jenner first created a meme coin called $JENNER on the Solana blockchain platform, then launched identical tokens on Ethereum just two days later, causing the original coins to lose value.In the period between these two launches, Greenfield alleged that Jenner also promoted another token named after her and Hutchins’s dogs ($BBARK), despite apparently telling followers she was “fully focused” on her self-named tokens.The lawsuit further claimed that Jenner profited from these moves by collecting a 3% fee on all transactions from the Ethereum version of her meme coin. This strategy allegedly harmed investors who had purchased the original Solana-based tokens.Legal Claims and DismissalGreenfield’s lawsuit presented nine legal arguments against Jenner and Hutchins, including federal securities violations, California state securities laws, fraud, and contract disputes. However, Judge Blumenfeld found that “all nine causes of action are deficient” and sided with Jenner in dismissing the suit in its entirety.The judge noted that Greenfield’s complaint provided “scant details” about his purchases, only stating that he “accumulated” the tokens using cryptocurrency from the Ethereum and Solana blockchains. Without specific evidence showing these transactions occurred within U.S. jurisdiction, the court could not proceed with the case.While dismissing the current lawsuit, Judge Blumenfeld has given Greenfield until May 23 to file a new complaint with better evidence that his purchases qualify for U.S. legal protection. Jenner and Hutchins have until June 6 to respond to any amended filing.Jack Fitzgerald, a lawyer representing the class group, told Cointelegraph they were “pleased the Court recognized we may be able to state some claims against the defendants, and intend to amend and press forward with the case.”Current State of the JENNER TokenThe JENNER token has seen a dramatic decline in value since its launch. According to data from CoinGecko, its market value has crashed to around $58,775 from a June 3 peak of nearly $7.5 million. The token has recently seen minimal trading activity, with just $61.10 worth of trading volume over a recent 24-hour period.This case occurs amid other controversies surrounding celebrity meme coins. The lawsuit alleged that Jenner and other celebrities launching meme coins claimed that collaborator Sahil Arora had scammed them.The judge did not rule on whether the JENNER token constitutes a security, noting that such determination “is fact-dependent and may be affected by an amended pleading.” He chose to assume, without deciding, that the tokens are securities subject to federal securities laws.The court did not allow the class to swap its lead plaintiff for a U.S.-based member and required a report by May 16 on how the suit will proceed with its current British lead plaintiff.The post Caitlyn Jenner Meme Coin Lawsuit Dismissed on Jurisdictional Grounds, Plaintiffs Plan to Regroup appeared first on CoinCentral.