Judge Colleen McMahon dismissed Burwick Law's claims against Solana Labs and Solana Foundation in the ongoing Pump Fun lawsuit. The filing also described McMahon's orders on motions to dismiss other allegations. The court upheld racketeering allegations against Pump Fun's parent company, Baton Corporation, and its executives Noah Bernhard Hugo Tweedale, Alon Cohen, and Dylan Kerler. The allegations accuse the defendants of wire fraud, illegal gambling, and unlicensed money transmission. Plaintiffs Carnahan and Okafor submitted those racketeering allegations. The court dismissed racketeering claims submitted by plaintiff Aguilar. The court dismissed allegations that Pump Fun defendants offered unregistered securities in violation of the Securities Act. The ruling found that the FRED and GRIFFAIN memecoins did not entail a common enterprise under the Howey Test. Crypto law firm founder Ariel Givner said the ruling does not mean that all memecoins are not securities. Givner said the ruling applies when a memecoin does not offer a shared goal of rising profits for everyone. The court also dismissed unjust enrichment allegations. McMahon asked Burwick Law to explain why it has not served 25 unnamed key opinion leaders since the lawsuit was filed in January 2025. Burwick Law accused the KOLs of promoting Pump Fun tokens and sometimes concealing their compensation and existing token positions. Burwick Law has until September 10 to explain why the KOL claims should not be dismissed for failure to identify and serve the defendants. A previous filing named the crypto influencer Scooter as one of the defendants. Scooter threatened to sue Burwick Law for potential defamation. Burwick Law added Solana Labs and Solana Foundation to the lawsuit over a year ago. Burwick Law alleged that the two worked together to avoid US securities laws and extract capital from the US market. Burwick Law also alleged that Solana crypto infrastructure provided no investor protections, disclosure obligations, or legal accountability for the memecoin market and its losses. Jito Labs was added as a defendant alongside Solana Labs. Burwick Law later voluntarily dropped Jito Labs from the lawsuit.
Judge Dismisses Claims Against Solana Labs in Pump Fun Lawsuit
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Summary
A U.S. judge dismissed Burwick Law’s claims against Solana Labs and the Solana Foundation in the Pump Fun case. The court upheld racketeering charges against Baton Corporation and its executives but rejected unregistered securities and unjust enrichment claims. FRED and GRIFFAIN failed the Howey Test, not qualifying as securities. Burwick Law must explain why 25 key opinion leaders were not served. Meanwhile, BTC remains a hedge against inflation amid regulatory scrutiny. CFT measures continue to shape enforcement actions in crypto markets.
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