A federal judge has ruled that Caitlyn Jenner's memecoin, known as $JENNER, does not qualify as a security, resulting in the dismissal of a class-action lawsuit against her. Judge Stanley Blumenfeld Jr. stated that the lawsuit did not sufficiently demonstrate that the tokens constituted investment contracts, as they lacked investor fund pooling or the development of associated products.
The legal action began in November 2024 when a group of investors alleged they suffered significant financial losses due to the token's value decline. They contended that the token was an unregistered securities offering. In May 2025, Blumenfeld dismissed the initial lawsuit for failing to present a valid claim, prompting the plaintiffs to submit an amended complaint later that month.
Lee Greenfield, a UK investor claiming losses exceeding $40,000, led the amended suit. It argued that Jenner had promised a buyback scheme and other financial benefits linked to the token's performance. However, the judge noted that the claims regarding donations to Donald Trump and fractional ownership of Jenner's gold medal were not convincingly tied to any potential return for investors.
Ultimately, Blumenfeld denied the plaintiffs' request for another amendment, concluding that the legal arguments related to fraud and contract issues under California law were insufficient.