Ruling for the United States District Court, Central District of California, Judge Stanley Blumenfeld Jr. has dismissed a pending class action lawsuit against Caitlyn Jenner over the Olympian’s self-promoted memecoin.
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Not a Security: A federal judge has declined to certify the class action lawsuit sought in the case of Naeem Azad v. Caitlyn Jenner, ruling that the JENNER memecoin does not constitute a security under federal law. The court found no evidence of a “common enterprise,” as investor funds were not pooled or used to build a product, key requirements under the Howey Test. Although Jenner engaged in vague marketing efforts, promising to use her token’s 3% trade tax to institute a buyback program, investor success was speculative and not directly tied to Jenner’s efforts.
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Prior Guidance: Following the launch and subsequent collapse of JENNER, in February 2025, the Securities and Exchange Commission (SEC’s) Division of Corporate Finance issued a staff statement, clarifying that federal securities laws do not typically apply to memecoins – describing them as speculative, entertainment-driven assets akin to collectibles, with no pooled investment structure or expectation of profits derived from the efforts of others.
