Caitlyn Jenner memecoin lawsuit dismissed for lack of US jurisdiction, buyers to regroup claiming unfairness

A California federal judge has dismissed a class action lawsuit brought against Caitlyn Jenner and her business manager, Sophia Hutchins, ruling that the plaintiffs failed to establish jurisdiction in the United States. The suit, led by a British investor who suffered losses from the $JENNER memecoin, was thrown out on Monday by Judge Stanley Blumenfeld Jr. of the US District Court for the Central District of California. Jenner’s lawyers had filed a motion to dismiss the case on May 9. Judge finds no basis for US jurisdiction in Jenner lawsuit In his ruling, Judge Blumenfeld wrote that the plaintiffs failed to demonstrate how the meme token’s transactions were involved in US jurisdiction. He stated that the complaint did not show how or where the memecoin purchases were executed within the United States. Without such information, the court could not infer that Jenner “incurred irrevocable liability” under US securities law. The class action’s nine legal claims included allegations of fraud, violations of federal and California state securities laws, misleading statements, and breach of contract. Seven of those claims targeted the former Olympian, while Hutchins faced two claims: controlling-person liability and aiding and abetting fraud. “All nine causes of action are deficient,” Judge Blumenfeld said in his opinion. He also pointed out that Greenfield insisted he had “accumulated” $JENNER tokens using ETH and SOL cryptocurrencies, but the filing did not provide precise evidence on how the transactions occurred, when they took place, or through which platforms. Another element of the case was whether the token constituted a security under US law, which the judge addressed saying: “ Because 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. ” The claim that Jenner sold unregistered securities also fell apart when the plaintiffs agreed that the tokens “were not sold via a prospectus.” Hutchins was cleared after the court ruled that the claim she aided Jenner’s alleged misconduct was invalid without a fraud claim. Jack Fitzgerald, a partner at Fitzgerald Monroe Flynn PC, represents the plaintiffs. In a statement following the dismissal, Fitzgerald reckoned the group was pleased the Court recognized it “may be able to state some claims against the defendants” and promised to “amend and press forward with the case.” Jenner and Hutchins will have until June 6 to respond should the class group proceed with an amended filing. Allegations of misleading promotions and dual token launches The original lawsuit, filed in November 2024, accused Jenner and Hutchins of promoting the $JENNER memecoin to investors by presenting the token as a promising opportunity. Lead plaintiff Lee Greenfield described by the court as the investor who suffered the largest losses, claims he lost more than $40,000 after purchasing and later selling the token between May and July 2024. According to court filings, Greenfield said Jenner initially launched the $JENNER token on the Solana blockchain through Pump.fun in late May. Just two days later, an identical version of the token was issued on the Ethereum blockchain. Greenfield claimed the second token diluted the value of the original Solana-based memecoin and misled investors who had bought in early. $JENNER peaked at nearly $7.5 million in June 2024, but its market capitalization has dropped to just under $59,000, according to CoinGecko data . Daily trading volume has also evaporated, totaling just $61 in the last 24 hours. Jenner and other celebrities had promoted it during its launch, only to later allege collaborator Sahil Arora scammed them. The memecoin relaunched the coin on Ethereum after the controversy, which plaintiffs claim undermined the original token’s value while financially benefiting the former Olympian through fees. KEY Difference Wire helps crypto brands break through and dominate headlines fast Source: https://www.cryptopolitan.com/caitlyn-jenner-memecoin-lawsuit-dismissed/