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Judge dismisses LIBRA and M3M3 memecoin class action with prejudice
The Sept. 29 ruling ended the Southern District of New York case, denied leave to amend again, and blocked an attempt to expand the lawsuit to three other tokens.
Investors in LIBRA, a memecoin promoted by Argentine President Javier Milei, lost a US district-court path to recover losses after a judge dismissed a proposed class action covering LIBRA and fellow token M3M3, according to CryptoSlate.
On Sept. 29, Judge Jennifer L. Rochon dismissed the amended complaint with prejudice, denied permission to amend again, and ordered the Southern District of New York case closed. The ruling also prevented plaintiffs from expanding the lawsuit to three other tokens.
The plaintiffs alleged that insiders controlled token launches and extracted funds from liquidity pools at outside investors’ expense. The court said its analysis turned on the legal sufficiency of the federal claims and jurisdiction.
CryptoSlate reports that the central federal claim relied on the Racketeer Influenced and Corrupt Organizations Act, or RICO, which requires a pattern of related racketeering acts showing either substantial continuity or a threat of ongoing criminal activity. The court found neither form of continuity was adequately pleaded.