"Judge Blumenfeld found that lead plaintiff Lee Greenfield failed to satisfy the common enterprise prong of the Howey Test, which is crucial for determining if a financial product is a security. The court concluded that the complaint did not plausibly allege that investors pooled resources or agreed to share profits and losses beyond the purchase of the coin itself."
"The decision centers on the Howey Test, which requires an investment of money in a common enterprise with an expectation of profits derived from the efforts of others. The ruling indicates that the JENNER meme coin does not meet these criteria, thereby dismissing all securities claims with prejudice."
On April 16, 2026, a federal judge dismissed all securities claims against Caitlyn Jenner's JENNER meme coin, ruling it does not qualify as a security under federal law. The judge determined that the coin failed the common enterprise prong of the Howey Test, which assesses whether a financial product is an investment contract. California state-law fraud claims were dismissed without prejudice, allowing plaintiffs the option to refile in state court. This ruling sets a significant precedent for future meme coin litigation.
Read at news.bitcoin.com
Unable to calculate read time
Collection
[
|
...
]