US Judge Approves Amended Complaint in Pump.fun and Solana Class Action
A federal judge of the US District Court for the Southern District of New York in the class action lawsuit against memecoin platform Pump.fun, Solana Labs, and several executives. The ruling allows plaintiffs to expand claims following allegations of a coordinated scheme, referred to as the “Pump Enterprise,” which allegedly manipulated token launches to benefit insiders while diupsetvantaging ordinary investors.
The lawsuit comes amid the platform’s rapid growth. Pump.fun , while Solana’s decentralized ecosystem has grown to a total value locked (TVL) of about $8.7 billion. Yet, plaintiffs claim that ordinary investors were repeatedly diupsetvantaged in what was marketed as a fair marketplace.
Allegations Against Pump.fun and Solana
Filed by Diego Aguilar, Kendall Carnahan, and lead plaintiff Michael Okafor, the lawsuit targets Solana Labs co-founders Anatoly Yakovenko and Raj Gokal, Solana Foundation executives Dan Albert, Austin Federa, and Lily Liu, and Pump.fun co-founders Alon Cohen, Noah Tweedale, and Dylan Kerler.
Plaintiffs allege the defendants profited from token launches by giving insiders priority access while misleading ordinary users. Pump.fun promoted its launches as “fair” and “rug-pull proof” and charged a 1% platform fee. In practice, insiders reportedly bought large volumes at low prices before retail investors, triggering rapid price spikes and crashes.
Central to the alleged “Pump Enterprise” was , which relies on Block confirmers to process transactions and maintain network integrity. Plaintiffs claim Solana’s Block confirmer system and Jito Labs’ transaction-ordering tools allowed insiders to jump ahead in token launches, securing profitable trades before ordinary investors.
Pump.fun’s , amplified this effect. Plaintiffs argue that “what appeared to be a fair, automated marketplace was structurally tilted to extract value from ordinary users while rewarding those with privileged access to Solana’s infrastructure and Jito Labs’ transaction ordering tools.” Insiders faced minimal risk and near-guaranteed profit, while ordinary investors bore almost all the downside.
Internal Logs, Potential Damages and Next Steps
The second amended complaint will incorporate thousands of internal logs and communications, which allegedly show coordination between Solana, Pump.fun, and associated actors. These records detail and token launch timings, supporting claims of market manipulation and racketeering.
Plaintiffs claim the scheme generated billions of dollars for insiders, while ordinary investors suffered losses. Under RICO, damages could be tripled, potentially exposing defendants to multi-billion-dollar liabilities.
Plaintiffs viewk to represent a class of all individuals who purchased tokens through Pump.fun from March 1, 2024, through July 23, 2025, as well as a narrower Pump Tokens Subclass for purchasers of twenty specific tokens. Legal claims include violations of the Securities Act of 1933, alleged coordinated fraud and racketeering under RICO, deceptive acts and false advertising under New York’s General Business Law, and unjust enrichment.
With the court granting leave to amend, plaintiffs will incorporate the internal logs into the complaint. Defendants will respond, likely with motions to dismiss, shaping the next phase of litigation into ahead 2026.
