Background of the Case
Caitlyn Jenner, Olympic celebrity, has been charged in a proposed class-action lawsuit involving claims linked to her promotion of the JENNER memecoin. On Nov. 13, in a complaint filed in a California federal court, two investors, Naeem Azad and Mihai Caluseru have accused Jenner along with her manager, Sophia Hutchins, of deceiving them. In the suit, Jenner was offering JENNER as an unregistered security and publicly promoted the project to attract “financially unsophisticated” people.
Losses to the Investors and Misleading Claims Made in Promotion
They claimed to have lost upwards of $56,000 collectively by purchasing JENNER mainly based on Jenner’s endorsement of the token. The plaintiffs contend that her promotion of the token contained false or misleading information to make the investment appear far more promising than it actually was. They insisted that Jenner’s statements and omissions were central to their losses and that they would never have invested if they had been properly informed.
SEC Registration Claims
The class action complaint further alleges that Jenner failed to file JENNER with the SEC and, as a result, failed to disclose a host of information required for investors. Plaintiffs contend this is an omission on which the investors relied to their prejudice in not being able to assess the risks of investing in the token and that “caused significant damages to them.”
JENNER’s Performance Decline
JENNER had initially launched on Solana in May via Pump.fun but moved to Ethereum after a falling-out between Jenner and one of his collaborators. Since then, the token lost its value, reaching an all-time low with very low trading volume, if any, according to CoinGecko. The drop in market performance is also at the core of the investors’ ire, who claim Jenner has “abandoned” the token, thus leaving holders with significant losses.
Claims of Concealed Information and Financial Mismanagement
The lawsuit also alleges Jenner had hidden insider deals, such as the 3% transaction tax, lining her pockets. What is more, the plaintiffs claim that promised exchange listings and token buybacks never materialized and added to investor losses. The complaint claims these omissions and unfulfilled promises should amount to breaches in securities law and the прозbenh suggest Jenner’s actions favored her profit at the expense of investors’ transparency.
Awaits Response
So far, Jenner and Hutchins have remained mum on the suit and its request for comment. If the court rules in favor of the plaintiffs, then the case may yield huge repercussions.
