Summary
- A New York federal judge dismissed the LIBRA class action with prejudice on September 29 2026
- $57.6M in LIBRA funds were swapped to SOL and gone prior to the ruling
- Ongoing Trump meme-coin promotions continue to draw new participants despite the precedent
A New York federal judge dismissed the LIBRA and M3M3 class-action lawsuit with prejudice on September 29 2026. The move shut down claims against Meteora, Ben Chow and Kelsier in district court. Investors lost their recovery path at that level.
Timing overlaps with October 2026 dinner announcements for top Trump meme coin holders. This has sharpened focus on the lawsuit fallout and meme coin habits.
Context
The case alleged fraud and racketeering around the LIBRA token launch and trades. Plaintiffs sought damages after price swings left holders with losses. The court rejected an amended complaint that tried to add MELANIA, ENRON and TRUST tokens.
Meme-coin launches keep drawing regulatory attention. The dismissal fits a pattern of limited class-wide recovery in fast markets. Promotional dinners still pull in participants.
Details
Court records show $57.6M in LIBRA funds swapped to SOL and moved out before the September 29 decision. The judge ruled the complaints failed to state viable claims. All charges, including fraud and RICO violations, were dismissed.
"US judge kills Milei's LIBRA memecoin lawsuit leaving investors stranded."
, CryptoSlate (Source)
Investors now have no district-court recovery route. Similar promotions still attract fresh capital into new coins.
Crypto regulation questions remain open. Observers note the quick fund moves and rejected claims highlight gaps in meme-coin protections.
Outlook
Market participants will watch for similar suits in other jurisdictions. They will also track how upcoming trump-dinner events shape holder behavior and enforcement priorities.