A group of JENNER memecoin purchasers filed a lawsuit against Caitlyn Jenner, alleging that she made “false and deceitful statements” about the token, which they claim is an unregistered security.
A memecoin buyer group has filed a proposed class-action lawsuit against former Olympian Caitlyn Jenner, alleging that she sold a celeb token as an unregistered security.
On Nov. 13, Naeem Azad and Mihai Caluseru, who are citizens of the United Kingdom and Romania, respectively, submitted a complaint to a federal court in California. The complaint alleged that Jenner and her manager, Sophia Hutchins, “fraudulently solicited financially inexperienced investors throughout the United States and abroad to purchase the unregistered securities.”
They stated that they would not have lost over $56,000 by purchasing JENNER on Ethereum and Solana if it were not for Jenner’s false and misleading statements and omissions.
The lawsuit alleged that Jenner “willfully failed” to register the token with the Securities and Exchange Commission, and that purchasers “suffered substantial damages” as they were unable to evaluate the risk of investing and were not provided with the information that would have been shared had JENNER been registered.
In May, JENNER was initially introduced on Solana by the memecoin manufacturer Pump.fun. Subsequently, she and other prominent figures accused collaborator Sahil Arora of defrauding them. She subsequently relaunched the token on Ethereum.
The Ethereum token has practically lost all of its value since its inception, with its price reaching an all-time low on Nov. 13 and its total value plummeting to $170,000 from a zenith of nearly $7.5 million. CoinGecko also reported that the trading volume was only $1.80 over the past day.
The complaint alleged that Jenner has all but abandoned the initiative, is no longer actively promoting the memecoin, and has left holders with significant losses.
According to the lawsuit, Jenner initiated “touting price and market capitalization objectives” for the Solana token shortly after its inception.
Jenner subsequently relaunched the token on Ethereum, which Azad and Caluseru claimed had a significant impact on the value of the original Solana token. They also claimed that Jenner had “instituted a 3% ‘tax'” on every transaction, information that they claimed she had “never adequately disclosed” but that had “enriched Jenner tremendously.”
They asserted that this violated securities laws by alleging that Jenner used the token’s profits to pay for its listing on exchanges and to make promises of token buybacks. The suit alleges that these things never occurred and contributed to additional losses.
The suit also claimed that Jenner “willfully omitted information” regarding the amount and cost of her and other insiders’ JENNER holdings, which she allegedly obtained “earlier and cheaper than the general public,” as well as details on her interactions with Arora.
In their lawsuit, Azad and Caluseru accuse Jenner of securities and common law fraud. There are also allegations of securities law violations and aiding and abetting fraud against Hutchins.
There was no immediate information available regarding Jenner’s attorneys. Upon receiving a request for comment via her website, Jenner did not respond promptly. Hutchins was unavailable for comment.
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