Celeb Memecoin Lawsuit Hits Jenner

A proposed class-action lawsuit targets former Olympian Caitlyn Jenner, alleging that she misled investors with an unregistered “JENNER” token on Ethereum and Solana. Filed in California federal court by Naeem Azad and Mihai Caluseru, the lawsuit accuses Jenner and her manager, Sophia Hutchins, of enticing “financially unsophisticated” individuals to invest in the token, ultimately resulting in losses of over $56,000 for the plaintiffs.

Azad and Caluseru’s complaint claims that they would not have bought JENNER without Jenner’s promotion, which included allegedly “false and misleading” statements. They argue that the token’s launch lacked necessary information, leaving investors without clear risk indicators they would have had if the asset had been registered with the Securities and Exchange Commission (SEC).

Controversy and a Token Relaunch

Launched on Solana through memecoin platform Pump.fun in May, JENNER quickly faced controversy. High-profile figures like Jenner pointed fingers at collaborator Sahil Arora, alleging he “scammed” them. Shortly after, Jenner relaunched JENNER on Ethereum, abandoning the Solana version and leaving early buyers with rapidly declining assets.

According to the lawsuit, the Ethereum relaunch did little to stabilize the token. As of Nov. 13, its value has plummeted to an all-time low, with a total valuation falling from $7.5 million at its peak to a mere $170,000. The trading volume reportedly shrank to $1.80 in a single day, signaling investor abandonment.

Allegations of Fraud and Hidden Fees

The suit alleges that Jenner promoted JENNER with unrealistic price targets, encouraging investors to trust in long-term value. However, a major sell-off by Arora caused a sharp decline in the Solana token’s value. The lawsuit argues that Jenner had a responsibility to disclose this risk to potential buyers, especially if she knew about Arora’s ownership and intentions.

Furthermore, Azad and Caluseru claim Jenner levied an undisclosed 3% “tax” on all transactions in the Ethereum version of JENNER, allegedly using these funds to cover exchange listing fees and promising buybacks that never materialized. This transaction tax, they argue, enriched Jenner at the expense of unaware investors.

“Omitted Key Information” and Investor Losses

Azad and Caluseru also allege that Jenner deliberately withheld details of her holdings and insider pricing advantages, benefiting from access to cheaper tokens compared to the general public. The complaint accuses Jenner of profiting from these advantages and failing to disclose her dealings with Arora, which further undermined trust in JENNER’s value.

Investors argue that Jenner’s failure to properly register JENNER as a security with the SEC left them vulnerable to heavy losses. In addition to allegations of fraud, the lawsuit accuses her of aiding and abetting fraud, citing Hutchins as a collaborator.

As this lawsuit unfolds, Jenner faces scrutiny over her role in promoting JENNER and the alleged consequences for investors. The case underscores the potential risks in the largely unregulated memecoin market, highlighting the consequences when celebrity-backed tokens fail to live up to their promises.