Class action lawsuit against Pump.fun and Solana profits

Judge Colleen McMahon issued an order admitting plaintiffs in the lawsuit against Pump.fun, allowing Solana to file a second amended complaint (SAC). The development came after the plaintiffs filed an amended motion in September, citing new evidence allegedly obtained from a confidential informant.

The lawsuit targets people who purchased tokens launched by Pump.fun after March 2024 and suffered out-of-pocket losses.

Although the defendant sought to dismiss the motion on legal technicalities, the court upheld the motion and granted the plaintiff time to incorporate new evidence. This means that the battle is about to begin anew.

Solana, what is the new evidence in the Pump.fun class action lawsuit?

Claims contained in recently released patents court documentsThe matters for which the plaintiffs were granted permission to submit amendments ranged from securities law violations to RICO violations to allegations of unjust enrichment.

“What appeared to be a fair and automated marketplace, the plaintiffs say, was structured to extract value from ordinary users while rewarding users with privileged access to Solana’s infrastructure and Jito Lab’s transaction ordering tools,” the filing states. Claim.

The plaintiffs claim they obtained chat logs of up to 5,000 incriminating messages after being contacted by a missing informant.

Based on the new evidence, the court determined that the proposed amendments were sufficient to proceed and dismissed or deferred related defense motions as appropriate.

Internal chat logs expected to be submitted as evidence involve Pump.fun personnel, Solana Labs engineers, Jito Labs executives, and other third parties.

Defendant moved to dismiss the complaint in its entirety because plaintiff did not attach a proposed amended complaint, but the court refuted this suggestion and was granted permission to file a second amended complaint.

Plaintiffs also requested a corresponding schedule change to allow sufficient time to process the new evidence and incorporate it into the second amended complaint they plan to file.

A lawsuit has not yet been filed, but if it were, the pending motion to dismiss the complaint from September 2025 could be invalidated or reset.

In summary, the battle has just begun, and its outcome could impact the entire Solana ecosystem.

Why are Solana and Pump.fun being sued?

Solana, Pump.fun The origins of the lawsuit date back to earlier this year, when retail investors who suffered losses from purchasing meme coins filed a class action lawsuit.

In the lawsuit, the plaintiffs accuse the Pump.fun platform, its co-founders Solana Labs Inc., Solana Foundation, and related executives, including Anatoly Yakovenko, Raj Gokal, Dan Albert, Austin Federa, and Lily Liu, of orchestrating a scheme to extract value from the so-called “Pump Enterprise.”

The main charges against the defendants now allege that they rigged the token launch in a way that secretly granted preferential access to insiders to purchase newly launched tokens, but the plaintiffs claim that all of this would not have been possible without Solana’s validator infrastructure and transaction ordering tools.

This arrangement allegedly gave insiders the opportunity to buy as many new tokens as possible at the lowest possible price, cause a spike in price via a bonding curve mechanism integrated into the Pump platform, and then fire sell to retail buyers who placed orders thinking they were playing on a level playing field.

This meant that retailers bought at inflated prices and ended up incurring widespread losses whenever prices crashed.