JENNER token investors filed a class-action lawsuit against Jenner and her manager Sophia Hutchins, accusing them of making misleading and false statements while promoting the token sale and failing to register the token with the SEC (Securities and Exchange Commission).

According to Bloomberg Law, two investors named Naeem Azad and Mihai Caluseru filed in California federal court on November 13, claiming that Jenner and her team violated federal and state securities laws during the promotion of the meme coin called JENNER.

Investors stated that they lost approximately $56,000 by purchasing this token on the Ethereum and Solana (SOL) networks. They also argued that they would never have purchased the token if not for the “misleading and incomplete statements” made by Jenner.

Events began in early May 2024 with the launch of the JENNER token via the pump.fun platform on the Solana network.

However, shortly after, Jenner claimed that she was defrauded by Sahil Arora, whom she served as an intermediary in the token launch.

In his statement on his social media accounts, Jenner stated that during the promotion of the token, Arora sold all his token assets to defraud investors. After this, Jenner announced that she had parted ways with Sahil.

In the lawsuit, Azad and Caluseru claim that Jenner initially promised investors that the original token on Solana would continue to grow.

According to the plaintiffs, Jenner assured investors that the token would not be relaunched. However, Jenner later stunned investors by relaunching the token on the Ethereum network.

The lawsuit also claims that it was not stated that the new JENNER token on the Ethereum network imposes a 3% tax on each transaction. This situation further increased the losses for investors.

Azad and Caluseru argued that these taxation details were not fully disclosed to investors by Jenner, and therefore many people suffered serious losses on their investments.

According to CoinGecko data, the JENNER token, which was relaunched on Ethereum, fell to an all-time low of $0.00007623 as of November 13. The token, which once had a market cap of around $7.5 million, is currently trading at just $170,429.

The plaintiffs’ claims include that because Jenner did not register the token with the SEC, investors failed to properly assess the risks when investing in this asset. As a result, it is stated that many investors face significant losses.

Investors argue that under federal securities laws, an asset must be registered with the SEC before it can be offered publicly. Since Jenner and his team did not fulfill these legal obligations, the plaintiffs claim that they suffered serious financial losses.

Jenner’s team claimed that the problems experienced in the launch of the JENNER token were due to social engineering attacks, as previously reported by crypto.news. However, investors claim that Jenner and his team took advantage of this situation and relaunched the token and tried to make a profit from it.

Other allegations in the case include that Jenner reduced the value of the original token on Solana with the relaunch on the Ethereum network, causing losses to investors.

Plaintiffs state that the token relaunch manipulates the market and abuses the trust of investors. Although there is no official response from Jenner and her team at the moment, this case has had a great impact in the crypto world.