Key Takeaways
- California federal court dismissed class-action litigation targeting Caitlyn Jenner’s JENNER memecoin
- Court determined the token failed to satisfy securities classification under the Howey Test framework
- Primary complainant Lee Greenfield reported losses exceeding $40,000 from token investments
- Court concluded investors did not form a “common enterprise,” an essential legal criterion
- Outstanding California state law allegations were transferred to state court jurisdiction
Caitlyn Jenner has successfully evaded legal consequences following a federal court’s decision to dismiss class-action litigation alleging her JENNER memecoin constituted an unregistered security.
A federal judge ruled Caitlyn Jenner’s $JENNER memecoin is not a security, dismissing a class action lawsuit from a buyer who lost $40K.
The court found the token failed the Howey Test’s “common enterprise” requirement. pic.twitter.com/UGQUs2YYzo
— Token Metrics (@tokenmetricsinc) April 17, 2026
U.S. District Judge Stanley Blumenfeld Jr. delivered the judgment on Thursday from California. His decision stated that plaintiffs failed to demonstrate the JENNER token satisfied legal criteria for security classification.
The litigation revolved around the Howey Test, a legal framework established by a 1946 Supreme Court decision. According to this standard, an investment contract requires funds to be combined in a collective enterprise with profit expectations derived from others’ managerial efforts.
Judge Blumenfeld determined that two critical components of the Howey Test remained unmet. Specifically, he identified no proof establishing a “common enterprise” among purchasers of the JENNER token.
The primary complainant, Lee Greenfield, a United Kingdom resident, claimed losses surpassing $40,000 from purchasing the token across both Solana and Ethereum networks during May 2024.
Greenfield’s allegations asserted that Jenner exploited her public prominence to generate excitement around the token. The legal filing cited a social media post on X displaying an AI-created image depicting Jenner wearing a “JENNER ETH” shirt, marketed toward potential investors.
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 had consolidated resources because Jenner pledged that a 3% transaction levy would finance token repurchases, promotional activities, contributions to Donald Trump’s political campaign, and partial ownership rights to her Olympic gold medal.
Court’s Rejection of the Pooling Theory
Judge Blumenfeld dismissed the pooling theory presented by plaintiffs. His ruling stated that allegations failed to demonstrate investors had agreed to share earnings and losses or combine assets for purposes extending beyond simple token acquisition.
The Olympic medal ownership proposal was revealed in August 2024, occurring after Greenfield had completed his token purchases, and ultimately never materialized.
The court also determined that Jenner’s marketing efforts alone were insufficient to establish a common enterprise.
Origins of the JENNER Token
The JENNER token initially debuted on the Solana blockchain during May 2024 via the Pump.fun platform. It immediately generated significant backlash after Jenner and additional public figures alleged they were defrauded by an associate identified as Sahil Arora.
Jenner subsequently relaunched the token on the Ethereum blockchain. Purchasers alleged this action damaged the original Solana version’s market value.
The token achieved its highest market valuation approaching $7.5 million in June 2024. Its value has subsequently declined to near-zero levels.
Legal Proceedings Moving Forward
Judge Blumenfeld rejected plaintiff requests to submit a third amended complaint. Claims based on California state regulations concerning contractual disputes and fraudulent conduct were redirected to state court proceedings.
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