Judge dismisses class action lawsuit against LIBRA and M3M3 with prejudice, rejecting RICO claims.
Regulation & Gov ·
A federal judge has dismissed a class action lawsuit against Hayden Davis, his firm Kelsier Ventures, and former Meteora CEO Ben Chow related to the launches of the LIBRA and M3M3 memecoins. The case, which had named Meteora as a defendant, has ended with prejudice.
Judge Jennifer Rochon's ruling found that the sequence of memecoin launches spanning six months could not sustain a RICO claim under the applicable legal standard. The judge also determined that plaintiffs had failed to properly plead Meteora as an entity capable of being sued, a procedural deficiency that contributed to the dismissal.
The decision leaves open questions about what other claims, if any, plaintiffs might have considered before filing, and whether similar legal challenges to token launches face comparable hurdles around establishing standing and meeting fraud or racketeering requirements.