Judge Dismisses LIBRA, M3M3 Class Action Against Meteora With Prejudice
A U.S. judge ruled September 29 that plaintiffs failed to establish a RICO racketeering claim tied to six months of memecoin launches by Meteora and former CEO Benjamin Chow. The court found Meteora was never properly pleaded as a suable entity and dismissed the case with prejudice.
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Dismissal Rationale
Judge Jennifer Rochon ruled that the class action against Meteora, CEO Benjamin Chow, and Kelsier Ventures could not proceed on racketeering grounds. The court determined that a six-month sequence of memecoin launches—specifically LIBRA and M3M3—did not constitute the pattern of predicate acts required to sustain a RICO claim under federal law.
Rochon also found a procedural defect: plaintiffs never properly pleaded Meteora as an entity capable of being sued, which barred claims against the company itself despite allegations of fraud and mismanagement tied to the token launches.
Implications of "With Prejudice"
The dismissal was entered "with prejudice," meaning plaintiffs cannot refile the same claims against the same defendants in the same court. The finality of the ruling limits the plaintiff group's options to appeal or pursue alternative legal theories against Meteora and Chow.
Why It Matters
For Traders
The ruling removes a potential overhang of damages liability tied to LIBRA and M3M3 tokens, though dismissal does not retroactively restore value to holders who suffered losses.
For Investors
The decision signals that U.S. courts may require stronger evidence of coordinated fraud patterns to sustain RICO claims in the memecoin space; brief launch sequences alone may not meet the bar.
For Builders
Token issuers and project operators now have a precedent that isolated memecoin launches do not automatically trigger racketeering liability, though good-faith disclosure and compliance remain prudent.
This article is for information only and is not financial advice. Read the full disclaimer.
