On December 9, 2025, U.S. District Judge Colleen McMahon of the Southern District of New York ruled in favor of plaintiffs in Aguilar v. Baton Corporation Ltd. et al. (Case No. 1:25-cv-00880), permitting the filing of a Second Amended Complaint that substantially expands the class-action lawsuit centered on the Solana-based memecoin launch platform Pump.fun. The ruling adds new allegations of insider advantages in token launches against Pump.fun's parent Baton Corporation, Solana Labs, the Solana Foundation, Jito Labs, and several named executives.
Key Ruling: New Evidence Admitted
Judge McMahon found that plaintiffs acted diligently after obtaining roughly 5,000 internal chat messages from a confidential informant in September 2025. The plaintiffs allege that Pump.fun marketed its launches as fair and accessible, while insiders—through Solana’s validator infrastructure and Jito’s transaction-ordering tools—secured priority access to purchase tokens at the lowest prices before retail users' transactions were processed. The court determined that allowing the amendment would not unduly prejudice defendants, noting that discovery has not yet begun and motions to dismiss remain pending.
Expanded Claims: Lanham Act and State Law Added
The Second Amended Complaint is expected to include fresh factual allegations and additional causes of action under the Lanham Act and New York state law, while retaining existing federal securities law and RICO (Racketeer Influenced and Corrupt Organizations Act) counts. The case was originally filed in January 2025 by investors Diego Aguilar and Kendall Carnahan, later joined by lead plaintiff Michael Okafor, and consolidated in July 2025. Earlier amendments had already introduced RICO claims.
Social Media Frenzy: 'End of Solana' or Overblown?
The ruling sparked intense debate on social media. X account Dagnum P.I. wrote: “This might be the end for Solana. A U.S. federal court greenlit a second amended complaint in a bombshell class-action suit against Pump.fun, Solana Labs, and affiliates. The claim? A shady insider scheme leveraging Solana’s validators and Jito tools to front-run memecoin launches.” However, many Solana supporters downplayed the lawsuit, calling it an exaggerated attack on a single memecoin platform rather than evidence of a structural flaw in the blockchain itself. They argued that similar front-running dynamics have occurred on other permissionless networks like Ethereum without triggering systemic legal chaos.
Critical Deadlines Ahead
Under the court’s order, plaintiffs must file the Second Amended Complaint by December 19, 2025. Defendants’ motions to dismiss are due by January 23, 2026, with replies scheduled for February 2026. This sets the stage for the next phase of litigation, which could establish legal precedents for validator conduct on the Solana network.
FAQ: Quick Overview
- What did the judge decide? Allowed plaintiffs to file a Second Amended Complaint with new allegations and evidence.
- Who are the defendants? Baton Corporation (Pump.fun parent), Solana Labs, Solana Foundation, Jito Labs, and related executives.
- Why was the complaint expanded? Plaintiffs obtained internal communications previously unavailable.
- What happens next? Plaintiffs file by Dec. 19; defendants move to dismiss by Jan. 23, 2026.
The cryptocurrency industry is watching closely as this case moves forward, potentially shaping how validator-related front-running and insider advantages are treated under U.S. law.