Judge Colleen McMahon has dismissed claims against Solana Labs, Solana Foundation, and its executives from a lawsuit filed by Burwick Law against Pump Fun, according to a court filing released this week.
McMahon's order addressed multiple motions to dismiss filed by Pump Fun defendants. The judge upheld racketeering allegations against Pump Fun's parent company Baton Corporation and executives Noah Bernhard Hugo Tweedale, Alon Cohen, and Dylan Kerler, which include claims of wire fraud, illegal gambling, and unlicensed money transmission. However, racketeering claims brought by plaintiff Aguilar were dismissed, while similar allegations from plaintiffs Carnahan and Okafor remain.
Securities Claims Dismissed
McMahon also dismissed allegations that Pump Fun defendants violated the Securities Act by offering unregistered securities. The defendants argued that two memecoins, FRED and GRIFFAIN, did not constitute a "common enterprise" and therefore did not meet the Howey Test for securities classification.
Crypto law firm founder Ariel Givner noted that the ruling does not establish a blanket exemption for memecoins from securities regulations, only that this particular ruling applies when a memecoin lacks a shared profit objective among participants.
Allegations of unjust enrichment were also dismissed from the suit.
Unserved Defendants
McMahon has ordered Burwick Law to explain why it has not served 25 unnamed key opinion leaders (KOLs) since the lawsuit was filed in January 2025. The lawsuit accuses these KOLs of promoting Pump Fun tokens and, in some cases, concealing their compensation and existing positions in tokens they promoted. Burwick Law has until September 10 to justify why these claims should not be dismissed for failure to identify and serve the defendants.
Crypto influencer "Scooter" was previously named as one of these defendants and subsequently threatened legal action against Burwick Law for potential defamation.
Background
Burwick Law added Solana Labs and Solana Foundation as defendants more than a year ago, claiming they worked together to circumvent U.S. securities laws and extract capital from the U.S. market. The lawsuit alleged that Solana's infrastructure provided insufficient investor protections and accountability. Jito Labs was also initially added as a defendant but was voluntarily dropped months later.
