Key Points
- California federal court dismissed securities fraud lawsuit targeting Caitlyn Jenner’s JENNER memecoin
- Court determined the cryptocurrency failed to satisfy security criteria under Howey Test standards
- Primary complainant Lee Greenfield reported losses exceeding $40,000 from token investments
- Court concluded absence of “common enterprise” element, essential for securities classification
- Additional claims under state jurisdiction transferred to California state court system
Caitlyn Jenner has successfully dodged legal responsibility following a federal court’s decision to dismiss a collective lawsuit alleging her JENNER cryptocurrency token constituted an unregistered security.
Judge Stanley Blumenfeld Jr., presiding in California federal court, delivered the decision Thursday. His ruling stated the legal action failed to demonstrate the JENNER token satisfied the established criteria for security classification.
The legal proceedings hinged on the Howey Test, a framework established by a 1946 Supreme Court decision. This benchmark requires an investment contract to demonstrate pooled capital in a collective venture with profit expectations derived from others’ work.
Judge Blumenfeld determined that two critical elements of the three-part Howey Test remained unsatisfied. Notably, he identified no proof establishing a “common enterprise” linking JENNER token purchasers.
Lee Greenfield, a United Kingdom resident serving as primary plaintiff, claimed financial damages surpassing $40,000 from purchasing the cryptocurrency on both Solana and Ethereum networks during May 2024.
Greenfield’s legal team contended that Jenner leveraged her fame to generate excitement around the token. The filing cited social media content featuring an AI-created image depicting Jenner wearing a “JENNER ETH” shirt, used to promote the cryptocurrency publicly.
The initial legal filing occurred in November 2024, naming both Jenner and her manager Sophia Hutchins as defendants. Hutchins subsequently passed away in July 2025.
The revised complaint asserted investors contributed pooled resources based on Jenner’s commitment that a 3% transaction fee would finance token repurchases, promotional activities, contributions to Donald Trump’s political campaign, and partial ownership rights to her Olympic gold medal.
Court’s Rejection of Pooling Claims
Judge Blumenfeld rejected the pooling assertions. His opinion stated the allegations failed to establish that investors agreed to share earnings and losses or combine resources beyond the simple act of purchasing the cryptocurrency.
The Olympic medal ownership proposal was announced in August 2024, following Greenfield’s investment purchases, and was never implemented.
The court also determined Jenner’s marketing efforts were insufficient alone to create a common enterprise.
JENNER Token History
The JENNER cryptocurrency initially debuted on the Solana blockchain in May 2024 via the Pump.fun platform. The launch immediately sparked controversy after Jenner and other public figures alleged deception by a partner identified as Sahil Arora.
Jenner subsequently relaunched the cryptocurrency on Ethereum. Purchasers alleged this migration diminished the worth of the initial Solana release.
The cryptocurrency reached maximum market capitalization approaching $7.5 million in June 2024. Current valuation reflects nearly complete value erosion.
Future Proceedings
The court rejected plaintiff requests to submit a third modified complaint. Claims under California state contract and fraud statutes were transferred to state court jurisdiction.
