Key Takeaways
- California federal court dismissed securities fraud allegations against Caitlyn Jenner’s JENNER memecoin
- Court determined the token failed to satisfy Howey Test criteria for security classification
- Primary plaintiff Lee Greenfield alleged losses exceeding $40,000 from token investments
- Court concluded investors did not participate in a “common enterprise,” a critical legal threshold
- Outstanding state-level claims were transferred to California’s state court system
A California federal judge has granted Caitlyn Jenner dismissal from a class-action complaint alleging her JENNER memecoin constituted an unlawful unregistered security.
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U.S. District Judge Stanley Blumenfeld Jr. delivered the decision this past Thursday, determining the lawsuit lacked sufficient proof that the JENNER token qualified as a security under applicable law.
The litigation hinged on the Howey Test, established by a landmark 1946 Supreme Court decision. According to this framework, an investment contract requires funds invested in a collective venture with profit expectations derived from the managerial efforts of others.
Judge Blumenfeld concluded that the plaintiffs failed to establish two of the three necessary Howey Test elements. Specifically, the court found insufficient evidence demonstrating a “common enterprise” existed among token purchasers.
The primary complainant, Lee Greenfield, a United Kingdom resident, claimed financial damages surpassing $40,000 from purchasing the cryptocurrency on both Solana and Ethereum networks during May 2024.
Greenfield’s allegations asserted that Jenner leveraged her public profile to artificially inflate interest in the token. The legal filing cited a social media post featuring an AI-created image depicting Jenner wearing apparel branded with “JENNER ETH,” used to market the cryptocurrency to potential buyers.
The initial legal action was submitted in November 2024, naming both Jenner and her management representative Sophia Hutchins as defendants. Hutchins subsequently passed away in July 2025.
The revised complaint contended that investors formed a pooled investment structure because Jenner pledged a 3% transaction levy would finance token repurchases, promotional activities, political contributions to Donald Trump’s presidential campaign, and fractional ownership rights to her Olympic gold medal.
Court Rejects Common Enterprise Argument
The judge dismissed the pooling theory presented by plaintiffs. His ruling stated the allegations failed to demonstrate investors entered agreements to share returns and risks or combine resources for purposes extending beyond simple token acquisition.
The fractional gold medal ownership concept was publicly announced in August 2024, occurring after Greenfield had completed his token purchases, and the plan never materialized.
Additionally, the court determined that Jenner’s marketing efforts alone were insufficient to constitute a common enterprise under securities law.
The JENNER Token’s Controversial History
The JENNER token initially debuted on the Solana blockchain in May 2024 via the Pump.fun platform. The launch immediately sparked controversy after Jenner and additional celebrity promoters alleged they were defrauded by an associate identified as Sahil Arora.
Jenner subsequently relaunched the cryptocurrency on Ethereum. Investors alleged this dual-chain strategy significantly diminished the original Solana token’s market value.
The token achieved a maximum market capitalization approaching $7.5 million in June 2024. Since that peak, the cryptocurrency has experienced a near-total collapse in valuation.
Legal Proceedings Moving Forward
The court rejected the plaintiff’s motion to submit a third amended complaint. Claims based on California state contract and fraud statutes were remanded to state court jurisdiction.
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