$LIBRA, $M3M3 Class Action Lawsuit Dismissed with Prejudice
A class action lawsuit against Hayden Davis, Kelsier Ventures, former Meteora CEO Benjamin Chow, and Meteora itself has been dismissed by a US federal judge. The case revolved around the token launches of memecoins $LIBRA and $M3M3.
The plaintiffs alleged that the defendants operated an unlawful enterprise that siphoned 44.6 million USDC and 249,665 SOL from liquidity pools to profit from token launches. However, Judge Jennifer L. Rochon ruled that the alleged activity spanned only six months, which is insufficient to establish a pattern of continuity under the federal RICO Act.
The court also rejected claims directed against Meteora's structure and the defendants, finding that the plaintiffs failed to provide sufficient evidence to support their allegations. Specifically, the judge noted that holding administrative keys to push code updates does not equate to a seven-member board executing joint commercial decisions.
The dismissal with prejudice brings an end to the ongoing litigation in the Southern District of New York, while separate ancillary matters and administrative inquiries surrounding $LIBRA remain ongoing across other regulatory venues.