A federal judge in the Central District of California has dismissed securities law claims against the JENNER meme coin launched by Caitlyn Jenner, ruling that the token does not meet the Howey Test criteria for an investment contract. Judge Stanley Blumenfeld Jr. issued the order on April 16, 2026, granting defendants' motion to dismiss the second amended complaint in Naeem Azad et al. v. Caitlyn Jenner et al. (Case No. 2:24-cv-09768).
Howey Analysis: Absence of Common Enterprise
The court focused on the second prong of the Howey Test, which requires a "common enterprise" where investors pool funds and share profits. Lead plaintiff Lee Greenfield failed to plausibly allege that JENNER investors combined their resources or agreed to share gains and losses beyond the mere purchase of the token. The complaint referenced a transaction fee, buybacks, and marketing efforts, but the judge found these insufficient to establish a common enterprise. Because this element was not satisfied, the court did not address the third prong regarding profits from the efforts of others.
Case History and Background
Jenner launched the JENNER token on Solana on May 26, 2024, and later on Ethereum. She heavily promoted it on social media, including AI-generated images suggesting profit potential. The original class-action suit was filed in November 2024 by Rosen Law Firm. An earlier dismissal in May 2025 gave plaintiffs leave to amend, leading to the addition of Greenfield, a British investor claiming losses exceeding $40,000. The defendants included Jenner and her former business manager Sophia Hutchins, who died in July 2025.
Legal Implications and Next Steps
Federal securities claims were dismissed with prejudice, barring Greenfield from re-filing in federal court. State law claims for common fraud and quasi-contract were dismissed without prejudice, allowing plaintiffs to pursue them in California state court. The judge declined to exercise supplemental jurisdiction. While not binding on the SEC or other courts, the ruling sets a precedent for celebrity meme coin litigation. Jenner had previously called the suit meritless and established a legal defense fund. No immediate appeal has been reported.