A recent class-action lawsuit has been filed against reality TV personality and former Olympian Caitlyn Jenner by a group of investors who purchased the JENNER memecoin. The plaintiffs allege that Jenner made false and misleading statements about the memecoin, which they claim qualifies as an unregistered security.
The lawsuit was submitted to a California federal court on November 13 by two investors, Naeem Azad from the United Kingdom and Mihai Caluseru from Romania. They claim to have incurred losses exceeding $56,000 due to Jenner’s misleading assertions regarding the token. The complaint states that they would not have invested in the memecoin had they known the true risks, which could have been disclosed if Jenner had complied with registration requirements set by the Securities and Exchange Commission (SEC).
The JENNER token was first launched on the Solana blockchain in May and quickly drew controversy. Jenner, along with other celebrities, previously accused a collaborator named Sahil Arora of defrauding them, leading to a decline in the token’s value. Despite Jenner’s attempt to revive the project by relaunching it on the Ethereum network, the token’s value plummeted significantly, reaching an all-time low on the same day the lawsuit was filed.
- Peak Market Capitalization: Nearly $7.5 million
- Current Total Value: Approximately $170,000
- Trading Volume: Only $1.80 in the past day
The investors have accused Jenner of abandoning the project, stating that she no longer promotes the memecoin and has left her investors facing overwhelming losses. In addition, the lawsuit claims that Jenner failed to inform investors about critical factors that could affect their investments, including a hidden 3% transaction tax implemented on every JENNER transaction.
The lawsuit outlines various legal issues, including claims of securities fraud and common law fraud against Jenner and her manager, Sophia Hutchins. The plaintiffs assert that Jenner benefited financially from her failure to disclose essential information about the token’s launch, trading activities, and her personal holdings in JENNER.
The outcome of this lawsuit could have significant implications for celebrity-endorsed cryptocurrencies and the regulatory framework that surrounds memecoins. As the cryptocurrency market continues expanding, this case highlights the potential risks investors face when purchasing assets endorsed by public figures without proper disclosures of their legal status and financial realities.
