A group of investors in a recently launched memecoin has initiated a proposed class-action lawsuit in California against Caitlyn Jenner. They allege that Jenner, along with her manager Sophia Hutchins, sold the JENNER token as an unregistered security, misleading investors in the process.
The plaintiffs, Naeem Azad and Mihai Caluseru, claim they collectively lost over $56,000 after purchasing the JENNER token on Ethereum and Solana . They argue that their investments would not have occurred without the alleged deceptive statements made by Jenner, which misled financially inexperienced investors about the risks involved. The lawsuit asserts that Jenner failed to register the token with the Securities and Exchange Commission, denying investors crucial information necessary for assessing their investment risks.
The JENNER token was initially launched on Solana in May but quickly became controversial, especially after Jenner claimed to have been scammed in a collaboration related to the project. The token was later relaunched on Ethereum , but its value has significantly deteriorated, plummeting from an earlier market valuation of nearly $7.5 million to just $170,000. Trading volume has diminished to a mere $1.80 in recent days.
The lawsuit further claims that after the launch of the Solana token, Jenner made statements regarding expected price increases and market capitalization, which misled investors when the token value collapsed after a significant sale by another involved party. Also highlighted in the suit is the assertion that Jenner introduced a transaction fee without adequately disclosing this aspect to investors, leading to more financial loss.
Additional allegations include Jenner’s failure to disclose key information about her holdings and transactions related to the JENNER token. The legal action brings forward claims of securities fraud against both Jenner and Hutchins, reflecting serious accusations of misconduct in the realm of celebrity-endorsed cryptocurrency investments.
