A US federal judge has dismissed a class action lawsuit related to a meme coin promoted by Caitlyn Jenner.
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A US judge has ruled that Caitlyn Jenner’s memecoin does not qualify as a security under the investment contract standard. The court stated that the investors failed to demonstrate any structural financial returns associated with the pooled funds or tokens. The lawsuit’s claims regarding token promotion and donations were dismissed, and the case was dismissed in federal court.
The court found that the argument did not meet the legal standards necessary to classify the tokens as securities under U.S. law.
Judge Stanley Blumenfeld Jr. said the complaint does not show that the tokens function as investment contracts. He pointed out that there is no clear evidence that investor funds are being pooled or tied into joint efforts to generate structured returns. “However, promotion alone does not constitute a joint venture,” the judgment states.
The case began when a group of investors filed suit in November 2024. They claimed that they suffered financial losses as the value of their tokens plummeted. Plaintiffs argued that the tokens were an offering of unregistered securities.
An amended complaint was subsequently filed in May 2025. These included allegations that investors provided money with expectations tied to future actions. These include token buybacks, marketing activities, and other planned uses. However, the court found that these claims did not clearly demonstrate how investors would derive financial benefit.
Additionally, the amended complaint focused on several proposed uses for the funds. These included donations and fractional ownership plans related to Jenner’s Olympic gold medal. The judge said these claims lacked a clear link to investors’ interests.
The ruling noted that some of these plans were introduced after certain investors had already purchased the tokens. It also pointed out that some of the proposals were not implemented. The court stated that these details did not support the structured investment agreement claim.
Background to the token launch and controversy
The JENNER token was launched in May 2024 and has since moved from one blockchain to another. This change became part of the controversy, as some investors said it affected the value of the token.
The project also faced controversy related to alleged problems with collaborators. Over time, the market value of the token has declined from its previous peak. The judge denied further amendments to the case and directed related claims to be reviewed by state court.
