Judge Dismisses LIBRA Memecoin Class Action Against Meteora and CEO
A U.S. judge dismissed with prejudice a class action lawsuit accusing Meteora and its former CEO Benjamin Chow of fraud and racketeering tied to memecoin launches LIBRA and M3M3. The court ruled that six months of token launches cannot sustain a RICO claim and that plaintiffs failed to properly plead Meteora as a defendant.
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Dismissal With Prejudice
Judge Jennifer Rochon ruled that the class action lawsuit against Meteora, CEO Benjamin Chow, and Kelsier Ventures must be dismissed with prejudice, meaning plaintiffs cannot refile the same claims. According to the September 29 opinion, the court found fundamental defects in the plaintiffs' case that bar continuation under any circumstances.
RICO Claim Rejected
The judge determined that six months of memecoin launches could not form the basis of a racketeering claim under federal law. Plaintiffs alleged that Meteora and Chow orchestrated a pattern of fraudulent conduct through the LIBRA and M3M3 token launches, but the court concluded the timeframe and scope were insufficient to meet the legal threshold for RICO liability.
Pleading Deficiencies
The court also found that plaintiffs never adequately pleaded Meteora as an entity capable of being sued. Without properly identifying the corporate structure or legal status of the defendant, the lawsuit lacked the foundational specificity required for a class action to proceed. This procedural failure, combined with the weak RICO allegations, provided independent grounds for dismissal.
Why It Matters
For Traders
Dismissal with prejudice removes legal overhang for Meteora ecosystem tokens, though it does not erase prior price damage from litigation risk.
For Investors
The ruling signals courts will apply strict pleading standards to memecoin fraud claims, raising the bar for future class actions against protocol teams.
For Builders
Clear dismissal on procedural and substantive grounds reduces litigation chilling effect on memecoin launches, though reputational damage persists independently of the legal outcome.
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