A US federal judge dismissed the class action lawsuit related to the launch of the LIBRA and M3M3 memecoins, terminating the case with prejudice. Judge Jennifer L. Rochon of the Southern District of New York rejected the plaintiffs' legal claims against Hayden Davis, Kelsier Ventures, Ben Chow, and Meteora on September 29, 2026.

The decision focused on whether the charges met the relevant legal standards rather than determining whether the alleged actions actually amounted to fraud.

RICO Claims Fail Over Alleged Criminal Pattern

After Argentine President Javier Milei made the LIBRA launch public, the plaintiffs alleged that defendants involved in the two token launches ran a coordinated conspiracy that included insider control, early funding, and money extraction.

These charges were brought under the federal Racketeer Influenced and Corrupt Organisations Act in the lawsuit. The accusations, according to Judge Rochon, did not prove the ongoing pattern of illegal action necessary for a RICO claim.

The plaintiffs' roughly six-month timeframe was deemed insufficient to prove the necessary pattern by the court, which concentrated on the time frame encompassed by the claimed conspiracy. As a result, the RICO claims against the pertinent defendants were dropped.

Fraud Claims Did Not Meet Intent Requirement

The claims of fraud met a distinct issue. The complaint's allegations against Ben Chow were deemed by the court to be insufficient in proving fraudulent intent.

One problem was observed related to the M3M3 launch. Judge Rochon concluded that the actions detailed in the complaint can also be in line with justifiable backing for the introduction of a token. The court additionally ruled that the purported profit motivation was insufficient on its own to prove fraudulent intent.

Chow's reaction to Milei's February 2025 post about LIBRA was also considered in the ruling. The associated consumer protection lawsuit cannot move forward since the plaintiffs did not adequately establish that the statement was inaccurate or severely misleading.

Court Says Meteora Was Not a Suable Entity

Due to the plaintiffs' designation of Meteora as an unincorporated group, it was treated differently. The court determined that Meteora's eligibility to be sued under federal or New York law was not adequately established in the complaint.

Rather than acknowledging the plaintiffs' description of Meteora as an organisation similar to a traditional business, the ruling examined Meteora from the perspective of software and decentralised infrastructure.

This distinction was important because, after concluding that the plaintiffs had not sufficiently pled Meteora's legal standing as a suable business, the court did not consider the remaining claims against the company.

Case Ends Without Ruling on Whether Fraud Occurred

Additionally, Judge Rochon denied the plaintiffs' wish to submit an additional amended complaint. Since the current complaint was dismissed with prejudice, the plaintiffs are unable to reintroduce the same allegations in this case through an updated filing. The lawsuit should be closed, the judge ordered.

It's critical to distinguish between dismissal and a factual finding. The September 29 order found that the allegations and claims did not meet the legal conditions necessary for the action to proceed. It did not prove that the purported insider activity, pre-launch fundraising, or fund extraction did not take place, nor did it conclude that fraud took place.

The decision therefore ends this particular class action while leaving the underlying factual questions outside the scope of the court's determination. Separate investigations or other proceedings concerning LIBRA and related activity are not resolved by this dismissal.

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