A group of investors has filed a class-action lawsuit against Caitlyn Jenner, 75, alleging that her promotion of the JENNER meme coin constitutes the sale of an unregistered security, resulting in significant financial losses.

The lawsuit, filed on November 13, 2024, in a federal court in California, claims Jenner and her manager, Sophia Hutchins, misled investors into purchasing the JENNER token without registering it with the U.S. Securities and Exchange Commission (SEC), thus depriving them of crucial information needed to evaluate the risks involved.

British investor Naeem Azad and Romanian investor Mihai Caluseru reported losses of more than $56,000 due to their investments in the JENNER token, which was initially launched on the Solana blockchain in May 2024. According to the lawsuit, Jenner’s public promotion and “false and misleading statements” about the token led them to make uninformed investment decisions.

The plaintiffs argue that if the token had been properly registered with the SEC, they would have received more transparency and legal protections.

The legal complaint highlights the troubled history of the JENNER token, which faced significant hurdles after Jenner and other public figures accused collaborator Sahil Arora of fraud. Following the allegations, Jenner migrated the token to the Ethereum blockchain, a move that did not prevent the token’s value from plummeting.

By November 13, 2024, its market capitalization had crashed from nearly $7.5 million to a mere $170,000, and trading volume dropped to an all-time low, with only $1.80 in daily transactions.

The plaintiffs also claim that Jenner failed to disclose key risks associated with the token, including the impact of Arora’s liquidation of his holdings and the 3% transaction tax imposed on Ethereum transactions.

They argue that this tax benefited Jenner, while further diminishing the value of the token for investors. The lawsuit alleges that Jenner’s actions contravened securities laws by using proceeds from the JENNER token to finance exchange listings and pledge buybacks, without providing adequate disclosure to investors.

Caitlyn Jenner launched the JENNER meme coin in May 2024. The token was initially introduced on the Solana blockchain via the Pump.fun meme coin platform before moving to the Ethereum blockchain later in the year. The coin’s launch and subsequent issues are central to the class-action lawsuit filed by investors in November 2024, who allege that Jenner’s promotion of the token violated securities regulations.