Judge drops Solana Labs from Pump Fun lawsuit, rules memecoins FRED and GRIFFAIN are not securities
A federal judge has dismissed claims against Solana Labs, Solana Foundation, and its executives in the ongoing lawsuit filed by Burwick Law over the Pump Fun platform. The ruling was revealed in a court filing on August 31, 2026.
Judge upholds racketeering claims but dismisses securities allegations
Judge Colleen McMahon allowed racketeering (RICO) allegations against Pump Fun’s parent company, Baton Corporation, and its executives to proceed. These include accusations of wire fraud, illegal gambling, and unlicensed money transmission. However, she dismissed RICO claims from one plaintiff, Aguilar.
The judge also ruled that the memecoins FRED and GRIFFAIN, launched on Pump Fun, do not qualify as securities under the Howey Test. The court found these tokens did not involve a “common enterprise,” a key requirement for classification as securities. Crypto law firm founder Ariel Givner noted that this ruling applies only to memecoins lacking a shared profit goal and does not mean all memecoins are exempt from securities laws.
Allegations of unjust enrichment against the defendants were also dismissed.
Burwick Law must explain delay in serving 25 unnamed influencers
The judge ordered Burwick Law to justify why it has not yet served 25 unnamed crypto influencers, or key opinion leaders (KOLs), who were accused of promoting Pump Fun tokens while concealing their compensation and existing token holdings. The firm has until September 10, 2026, to respond or risk dismissal of these claims. One influencer, known as “Scooter,” was previously named in the lawsuit and had threatened legal action against Burwick Law for potential defamation.
Solana Labs and Jito Labs previously added, then dropped
Burwick Law had added Solana Labs and Solana Foundation to the lawsuit over a year ago, accusing them of collaborating to bypass U.S. securities laws and extract capital from the U.S. market. Jito Labs was also named as a defendant but was later voluntarily dropped by Burwick Law.
What is confirmed
- Judge Colleen McMahon dismissed claims against Solana Labs, Solana Foundation, and its executives in the Pump Fun lawsuit.
- Racketeering (RICO) claims against Baton Corporation and its executives for wire fraud, illegal gambling, and unlicensed money transmission were upheld.
- Memecoins FRED and GRIFFAIN were ruled not to be securities under the Howey Test.
- Burwick Law must explain by September 10, 2026, why it has not served 25 unnamed KOLs.
- Jito Labs was previously dropped from the lawsuit by Burwick Law.
Why this matters
The ruling clarifies that not all memecoins automatically qualify as securities, which could influence future legal cases involving similar tokens. The dismissal of Solana Labs and its affiliates also narrows the scope of the lawsuit, focusing it more directly on Pump Fun and its associated entities.
