Key Highlights
- California federal judge dismissed class-action litigation against Caitlyn Jenner regarding the JENNER memecoin
- Court determined the token fails to satisfy the Howey Test criteria for security classification
- Primary plaintiff Lee Greenfield reported financial losses exceeding $40,000 from token purchases
- Court identified the absence of a “common enterprise” among token purchasers, eliminating a critical legal element
- Additional claims under state law were transferred to California state court for further proceedings
Caitlyn Jenner has successfully defended against federal litigation after Judge Stanley Blumenfeld Jr. dismissed a class-action case alleging her JENNER memecoin constituted an unregistered security.
Judge Blumenfeld issued his decision on Thursday from a California federal courthouse. His ruling concluded that the plaintiffs failed to demonstrate the JENNER token satisfied the necessary legal standards for security classification.
The legal analysis relied heavily on the Howey Test, a framework established by a 1946 Supreme Court decision. This test requires demonstrating that money was invested in a collective enterprise with profit expectations derived from the managerial efforts of others.
Judge Blumenfeld’s analysis concluded that the plaintiffs failed to establish two essential Howey Test elements. Specifically, the court found insufficient evidence demonstrating a “common enterprise” existed among those who purchased JENNER tokens.
Lee Greenfield, a resident of the United Kingdom, served as the primary plaintiff in this litigation. He reported purchasing the token across both the Solana and Ethereum networks during May 2024, resulting in losses surpassing $40,000.
Greenfield’s legal team contended that Jenner leveraged her public profile to generate enthusiasm for the token. The complaint highlighted an X platform post featuring an AI-created image depicting Jenner wearing a “JENNER ETH” shirt, which was used to attract public investment.
The initial complaint was submitted to the court in November 2024, naming both Jenner and her manager Sophia Hutchins as defendants. Hutchins passed away in July 2025.
The revised complaint asserted that investor assets were effectively pooled because Jenner committed to allocating a 3% transaction fee toward token repurchases, promotional activities, contributions to Donald Trump’s political campaign, and providing fractional ownership rights to her Olympic gold medal.
Court’s Analysis of the Pooling Claim
Judge Blumenfeld rejected the pooling theory presented by the plaintiffs. His ruling stated that the allegations failed to demonstrate investors had entered into any agreement to share profits, absorb losses collectively, or combine resources beyond the simple act of purchasing the cryptocurrency token.
The proposed fractional ownership arrangement for the gold medal was announced in August 2024, occurring after Greenfield had completed his token purchases, and the plan was never implemented.
The court further determined that Jenner’s promotional efforts alone were insufficient to establish the existence of a common enterprise under legal standards.
Origins of the JENNER Token
The JENNER token made its initial debut on the Solana blockchain during May 2024 via the Pump.fun platform. The launch immediately sparked controversy when Jenner and several other celebrity participants alleged they had been defrauded by an individual identified as Sahil Arora.
Jenner subsequently introduced a new version of the token on the Ethereum blockchain. Purchasers of the original token alleged this secondary launch significantly diminished the value of the Solana-based version.
The token achieved its highest market capitalization of approximately $7.5 million in June 2024. Current valuations reflect a near-total collapse from that peak.
Future Proceedings
Judge Blumenfeld denied the plaintiff’s motion seeking permission to submit a third amended version of the complaint. Claims based on California state law provisions addressing contract disputes and fraudulent conduct were redirected to the appropriate state court system.
