Judge Dismisses LIBRA Lawsuit Over Insider Trading Allegations
A US judge has dismissed Burwick Law's lawsuit against Hayden Davis and others over the launch of LIBRA, citing that the plaintiffs failed to meet specific legal requirements.
The lawsuit alleged a coordinated insider trading scheme involving the launch of M3M3 token in December 2024 and LIBRA in February 2025, resulting in investor losses exceeding $250 million. However, Judge Jennifer Rochon ruled that Burwick Law couldn't prove that Meteora was a suable entity or that Chow was fraudulent in his activities.
The judge also found that the plaintiffs failed to establish personal New York jurisdiction over the Kelsier defendants and couldn't establish a consistent pattern of racketeering within the six-month timeline of token launches.
Ariel Giver, founder of crypto law firm Burwick Law, noted that the dismissal shouldn't be interpreted as memecoins being legal but rather that 'the plaintiffs sued the wrong thing, under the wrong statute, with the wrong facts.'