Contents
Key Takeaways
- Federal court dismissed securities fraud claims against Caitlyn Jenner’s JENNER memecoin
- Court determined the token failed to satisfy Howey Test criteria for securities classification
- Primary complainant Lee Greenfield reported losses exceeding $40,000 on the token
- Court concluded investors did not constitute a “common enterprise” under legal standards
- California state law claims were transferred to state court jurisdiction
Caitlyn Jenner has successfully dodged legal responsibility following a federal court’s decision to dismiss a class-action complaint 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 decision on Thursday from California federal court. His ruling determined that plaintiffs failed to demonstrate the JENNER token satisfied legal criteria for security classification.
The dispute revolved around the Howey Test, a legal framework established by a 1946 Supreme Court decision. This standard requires an investment contract to demonstrate pooled funds in a joint enterprise with profit expectations derived from the efforts of third parties.
Judge Blumenfeld concluded that plaintiffs failed to establish two of the three necessary Howey Test elements. Specifically, he determined the evidence did not support the existence of a “common enterprise” linking JENNER token purchasers.
British citizen Lee Greenfield served as the primary plaintiff in the action. He claimed to have suffered losses surpassing $40,000 after purchasing the token across both the Solana and Ethereum networks during May 2024.
Greenfield contended that Jenner leveraged her fame to promote the token. The filing cited a social media post featuring an artificial intelligence-generated image depicting Jenner wearing a “JENNER ETH” shirt, which was used to market the token to potential buyers.
The initial legal action was brought in November 2024, naming both Jenner and her manager Sophia Hutchins as defendants. Hutchins subsequently passed away in July 2025.
The revised complaint maintained that investors had pooled their capital because Jenner had pledged a 3% transaction fee would support token repurchases, promotional activities, contributions to Donald Trump’s presidential campaign, and fractional ownership rights to her Olympic gold medal.
Court Rejects Common Enterprise Claim
Judge Blumenfeld dismissed the pooling assertion. His decision noted that the allegations failed to demonstrate any investor agreement to distribute profits and losses or combine resources beyond the simple act of token acquisition.
The gold medal ownership proposal was publicly announced in August 2024, occurring after Greenfield had completed his token purchases, and the plan was ultimately never implemented.
The court additionally concluded that Jenner’s marketing efforts alone were insufficient to prove the existence of a common enterprise.
History of the JENNER Token
The JENNER token initially debuted on the Solana blockchain during May 2024 via the Pump.fun platform. The launch immediately sparked controversy after Jenner and several other public figures alleged they were defrauded by an associate identified as Sahil Arora.
Jenner subsequently reintroduced the token on the Ethereum blockchain. Purchasers alleged this migration damaged the value of the initial Solana-based version.
The token achieved its highest market capitalization of approximately $7.5 million in June 2024. Since that peak, it has experienced a near-complete collapse in value.
Next Steps in Legal Proceedings
Judge Blumenfeld rejected the plaintiff’s motion to submit a third amended complaint. Claims based on California state contract and fraud statutes were transferred to California state court.
