Investors File Class-Action Lawsuit Against Caitlyn Jenner for JENNER Token
A class-action lawsuit has been filed against Caitlyn Jenner by a group of investors who allege that the promotion of the JENNER meme coin constituted an unregistered security, leading to significant financial losses. The complaint was submitted to a California federal court on November 13, 2024, claiming Jenner and manager Sophia Hutchins misled investors regarding the token's legal registration.
British investor Naeem Azad and Romanian investor Mihai Caluseru reported losing over $56,000 after purchasing the JENNER token on Ethereum and Solana. They attribute their losses to "false and misleading statements and omissions" made by Jenner that influenced their investment decisions.
The lawsuit asserts that Jenner "willfully failed" to register the JENNER token with the Securities and Exchange Commission (SEC), depriving investors of essential risk evaluation information. The plaintiffs argue that proper registration would have ensured transparency and protection for investors.
JENNER Token’s Launch and Controversy
The JENNER token launched on the Solana blockchain in May 2024 via the Pump.fun meme coin platform. Shortly thereafter, the project faced issues when Jenner accused collaborator Sahil Arora of fraud, prompting a shift of the token to the Ethereum blockchain.
Since this transition, the JENNER token's value has drastically declined. As of November 13, 2024, its market capitalization dropped from nearly $7.5 million to approximately $170,000. Daily trading volume also fell to $1.80, according to CoinGecko.
Source: CoinGecko
The lawsuit claims that Jenner has effectively abandoned the project, ceasing promotion and leaving investors with significant losses.
“Jenner appears to have all but abandoned the project, no longer actively promotes the memecoin, and has left holders on the hook for serious losses,” the complaint stated. “It is unlikely these losses can ever be recovered.”
Early Promotion and Subsequent Crash
After the initial launch on Solana, Jenner reportedly set specific price and market capitalization targets for the JENNER token. Its value fell sharply following Sahil Arora's sale of a large portion of his holdings, which is not mentioned as a defendant in the lawsuit. The plaintiffs contend that Jenner had a duty to inform investors of such risks but failed to do so.
Following the collapse of the Solana token, Jenner relaunched the JENNER token on Ethereum. The lawsuit alleges this move further devalued the original token while introducing a 3% transaction tax on trades. The plaintiffs claim Jenner did not adequately disclose this tax, suggesting it "enriched Jenner tremendously" at investors' expense. They assert that Jenner's actions violated securities laws by using profits from the token for exchange listings and promising token buybacks.