Federal Judge Tosses Securities Claims Against Caitlyn Jenner's JENNER Meme Coin
A federal judge in California has ruled that Caitlyn Jenner's JENNER meme coin is not a security under U.S. federal law, wiping out securities allegations in a proposed class action.
U.S. District Judge Stanley Blumenfeld Jr. of the Central District of California on April 16, 2026 granted defendants' motion to dismiss the Second Amended Complaint in Naeem Azad et al. v. Caitlyn Jenner et al. (Case No. 2:24cv09768) and entered final judgment the same day, ending the federal case. Law360 and Bloomberg Law first reported the dismissal.
The decision turns on the Supreme Court's Howey Test, which asks whether a transaction involves (1) an investment of money, (2) in a common enterprise, (3) with an expectation of profits from the efforts of others. Blumenfeld held that lead plaintiff Lee Greenfield failed to plead the "common enterprise" element.
According to the order, the complaint did not plausibly allege that token purchasers pooled resources or agreed to share profits and losses beyond simply buying the coin, including through the token's alleged transaction tax, buybacks, or marketing. With the common-enterprise prong not satisfied, the court did not reach the third prong on profit expectations based on others' efforts.
Federal securities claims were dismissed with prejudice as to Greenfield. California state-law claims—including common-law fraud and quasi-contract—were dismissed without prejudice after the court declined to exercise supplemental jurisdiction, leaving plaintiffs free to refile in state court. Claims by all putative class members other than Greenfield were also dismissed without prejudice.
Jenner launched JENNER on Solana on May 26, 2024 and shortly after on Ethereum. The suit alleged heavy promotion across social media, including posts on X featuring AI-generated images and messaging that suggested profit potential.
The Rosen Law Firm filed the original class action in November 2024 on behalf of purchasers during the class period. Plaintiffs argued Jenner's celebrity status and promotions created a reasonable expectation of profits tied to her efforts under Howey. Jenner and her then-business manager, Sophia Hutchins, were named as defendants; Hutchins died in July 2025.
The court had previously dismissed the initial complaint on May 9, 2025, finding plaintiffs—many of them foreign investors—did not adequately allege U.S.-based transactions. Plaintiffs later amended the complaint and added Greenfield, a UK citizen described as having losses exceeding $40,000, as lead plaintiff.
Jenner's lawyers consistently argued the token was not a security. Jenner has called the case meritless and set up a legal defense fund, warning of broader consequences for the digital-asset industry if the claims prevailed.
The ruling adds to a growing set of decisions drawing distinctions between speculative meme tokens and regulated securities. It does not bind the Securities and Exchange Commission (SEC) or other courts, and outcomes in meme-coin cases remain highly fact-specific. Still, the Blumenfeld order may be cited in future litigation involving celebrity-backed tokens, including those linked to public figures and political personalities.
No appeal has been reported. The federal judgment closes the case in federal court, while the underlying state-law issues remain open if plaintiffs choose to refile in California state court.
