A federal judge has delivered a major legal victory for the Solana ecosystem, dismissing all claims brought by Burwick Law against Solana Labs, the Solana Foundation, and their executives in the class action lawsuit tied to memecoin platform Pump.fun. The ruling, recorded on September 1, 2026, by Judge Colleen McMahon, removed Solana Labs and the Foundation from the case after more than a year of litigation.
The court also determined that the memecoins FRED and GRIFFAIN do not qualify as securities under the Howey Test, because they fail to meet the “common enterprise” requirement. Attorney Ariel Givner noted this does not mean all memecoins are exempt, only that the criterion applies when an asset lacks a shared objective of collective gains.
However, the case is not fully closed. RICO charges against Baton Corporation, the parent company of Pump.fun, and executives Noah Bernhard Hugo Tweedale, Alon Cohen, and Dylan Kerler were sustained for plaintiffs Carnahan and Okafor, covering allegations of wire fraud, illegal gambling, and unlicensed money transmission. Claims from plaintiff Aguilar were dismissed. Jito Labs had already been voluntarily withdrawn by Burwick Law months earlier.
The judge also ordered Burwick Law to explain by September 10 why it failed to serve 25 unnamed influencers accused of promoting Pump.fun tokens while concealing compensation and positions. Among them is “Scooter,” who threatened to sue the firm for defamation.
The decision could bolster investor confidence in Solana’s ecosystem and attract institutional interest, while the ongoing RICO case against Pump.fun highlights continued legal scrutiny of crypto platforms.
