A judge in the U.S. District Court for the Southern District of New York has ruled that Pump.fun and its co-founders must defend themselves against a lawsuit brought by purchasers, according to Bloomberg Law as cited by Techub News. The court found that two of the three named buyer plaintiffs had adequately pleaded claims under the Racketeer Influenced and Corrupt Organizations Act, or RICO, as well as conspiracy claims. The ruling also said the plaintiffs sufficiently alleged predicate racketeering acts, including wire fraud and unlicensed money transmission. Judge Colleen McMahon said those allegations were connected to the harm claimed by the plaintiffs, namely that buyers were required to pay transaction fees. As a result, part of the proposed class-action claims survived dismissal, leaving Pump.fun and related executives facing broader legal scrutiny in the case.
Judge Colleen McMahon of the U.S. District Court for the Southern District of New York has ruled that Pump.fun and its co-founders must defend against a lawsuit brought by purchasers, according to Bloomberg Law as cited by Techub News.
The ruling said that two of the three buyer plaintiffs adequately pleaded claims under the Racketeer Influenced and Corrupt Organizations Act, or RICO, as well as conspiracy claims. The court also found that they sufficiently alleged predicate racketeering acts including wire fraud and unlicensed money transmission.
McMahon said those allegations were linked to the harm described by the plaintiffs, specifically that buyers were forced to pay transaction fees. The decision allowed part of the proposed class-action claims to survive dismissal, meaning Pump.fun and related executives now face fuller legal review.
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