Caitlyn Jenner faces class-action lawsuit over unregistered JENNER token sales

According to a Bloomberg Law report, a new lawsuit claims that Caitlyn Jenner, alongside her manager Sophia Hutchins, misled investors about a cryptocurrency meme coin named JENNER.

Filed in California on 13 November, the complaint alleges that Jenner and Hutchins violated federal and state securities laws by promoting the token with what plaintiffs say were “false and misleading statements.”

Investors Naeem Azad and Mihai Caluseru, who reportedly lost $56,000 on the token, contend they were swayed by Jenner’s endorsement and would not have purchased the JENNER token without it.

In early May 2024, the JENNER token launched on Solana through the platform pump.fun.

However, its value plummeted shortly after, which Jenner attributed to a supposed scam involving a middleman named Sahil Arora, whom she hired to help launch the token.

Following the token’s release, Jenner claimed that Arora orchestrated a “rug pull” scheme by liquidating a large portion of token holdings, devastating its market value.

This incident led to Jenner severing ties with Arora.

Alleged lack of disclosure and token relaunch on Ethereum

Despite initially pledging not to relaunch the token, Jenner introduced a new version of JENNER on the Ethereum blockchain shortly after the Solana-based token’s collapse.

According to Azad and Caluseru, Jenner assured investors that she would continue supporting the original Solana token.

Her eventual decision to launch on Ethereum allegedly impacted the original token’s value, leading to significant losses for holders.

The lawsuit also claims that Jenner failed to disclose key aspects of the Ethereum relaunch, including a 3% transaction tax on trades involving the new token.

This lack of transparency, plaintiffs argue, deprived them of critical information necessary to assess the risks associated with investing in the Ethereum-based JENNER token.

Token’s performance and legal concerns over SEC registration

According to CoinGecko data, the JENNER token launched on Ethereum reached an all-time low on 13 November, trading at $0.0001697, with a current market cap of $169,668, a steep fall from its previous peak of nearly $7.5 million.

The lawsuit highlights that the token was not registered with the US Securities and Exchange Commission (SEC), which the plaintiffs assert left buyers unaware of potential risks and regulatory issues.

The SEC’s regulatory oversight is intended to protect investors by ensuring full disclosure of risks in securities offerings.

By failing to register the JENNER token, Jenner and her team allegedly denied investors these protections, leading to the financial damages claimed by the plaintiffs.

Investors seek compensation over meme coin promotion fallout

Azad and Caluseru are seeking restitution for their investment losses, arguing that Jenner’s endorsement provided the main reason for their involvement with the token.

This case underscores growing scrutiny over celebrity-backed cryptocurrency ventures and potential liabilities linked to securities law violations.

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