JENNER buyers filed a class-action lawsuit against former Olympian Caitlyn Jenner for failing to register the token with the SEC and for giving ‘false and misleading’ statements regarding its sale.
According to a Bloomberg Law report, Naeem Azad and Mihai Caluseru filed the complaint to a California federal court on Nov. 13, claiming that Caitlyn Jenner and her manager Sophia Hutchins violated federal and state securities laws in promoting the meme coin JENNER.
They claim to have lost around $56,000 due to buying the token on Ethereum(ETH) and Solana(SOL) and that they would not have bought the JENNER token in the first place if it had not been for the “false and misleading statements and omissions made by Jenner.”
In early May 2024, the JENNER token was first launched on Solana through pump.fun. But shortly after Jenner claimed that she was “scammed” by a middle-man named Sahil Arora.
As previously reported by crypto.news, Jenner’s account was allegedly socially engineered to promote a scam coin, called JENNER, which experienced a significant drop in value shortly after its launch. The former gold-medalist and her team employed Sahil to launch the token, but claimed that he pulled the rug on investors by selling all the token holdings after its launch.
Shortly after Jenner cut ties with Sahil, Azad and Mihai alleged that Jenner had initially told investors that she would not relaunch the token and would instead stick to promoting the original.
“Jenner promised investor that there would be no relaunch and that this token on the Solana blockchain would continue to grow and be supported by Jenner and her team,” the lawsuit read.
However, Jenner would then go on to relaunch the JENNER token on Ethereum, which Azad and Caluseru claimed floored the value of the original Solana token and applied a 3% ‘tax rate towards every transaction, something they alleged celebrity never properly disclosed.
Based on data from CoinGecko, the JENNER token launched on Ethereum hit a new all-time-low on Nov. 13, trading at $0.00007623. The celebrity meme coin now has a market cap of $170,429, despite once holding peak of nearly $7.5 million.
The lawsuit also stated that Jenner failed to register the token with the Securities and Exchange Commission, which they clai,m lead to “significant damages” suffered by buyers who were unable to evaluate the risk of investing in the token.
