$LIBRA class action lawsuit dismissed with prejudice by court

by@martypartymusic

Summary

A class action lawsuit involving the $LIBRA and $M3M3 tokens has been dismissed with prejudice by Judge Rochon in the Southern District of New York. The judge ruled that the plaintiffs failed to properly plead their case, stating that the short-term nature of the memecoin launches did not meet the requirements for RICO claims. The lawsuit stemmed from allegations surrounding the December 2024 launch of $M3M3 and the February 2025 $LIBRA token, which was linked to a social media post by Javier Milei. The court emphasized that decentralized protocols, like the Solana DEX at the center of the case, cannot be treated as suable entities under partnership theories without clear operational control or identified members, which the plaintiffs failed to establish.

Tokens

$LIBRA$M3M3

Analysis

$M3M3: $M3M3 is a Solana-based memecoin launched in December 2024 that drew scrutiny for its rapid price movements and alleged insider activity. It formed part of the same SDNY class action as $LIBRA, with plaintiffs claiming similar patterns of pool manipulation and dumps. The lawsuit against it was fully dismissed, with the court finding no proper legal basis for the claims. $LIBRA: $LIBRA is a Solana-based memecoin launched in February 2025 and promoted via a post from Argentine President Javier Milei. The token faced allegations of insider manipulation in a class action lawsuit filed in SDNY. The court dismissed all claims against it with prejudice, ruling the complaint failed to state viable causes of action. Kelsier: Kelsier is an entity named in the SDNY class action involving $LIBRA and $M3M3. It was alleged to have participated in the token-related activities. Claims against Kelsier were dismissed for lack of personal jurisdiction after the RICO claims failed. Meteora: Meteora is a Solana decentralized exchange protocol involved in liquidity provision for the $M3M3 and $LIBRA launches. It was initially targeted in the lawsuit but successfully intervened to clarify its status as software rather than an unincorporated association. All claims against Meteora were dismissed by the court. Ben Chow: Ben Chow is a defendant in the dismissed class action over $LIBRA and $M3M3. He was accused of enabling aspects of the token launches that allegedly harmed investors. The court rejected fraud claims against him, citing insufficient pleading of scienter under Rule 9(b). Hayden Davis: Hayden Davis is an individual named as a defendant in the $LIBRA and $M3M3 class action lawsuit. He faced allegations related to the token launches and liquidity pool management. The court dismissed claims against him, primarily on jurisdictional grounds once RICO counts were eliminated. DEX Structure: Solana-based liquidity protocols function as software and are not automatically liable under partnership or conspiracy theories absent specific operational control. Legal Standard: Federal courts require plaintiffs to properly plead an unincorporated association with identified members and common objectives before treating decentralized protocols as suable entities. RICO Application: Closed-ended continuity for RICO claims typically demands a substantial period of racketeering activity, which short-term token launch sequences do not satisfy.

Categories

cryptosolanaethereumdefipoliticstechhyperliquidai_agents
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