A U.S. federal court has granted plaintiffs permission to file a second amended complaint in the sprawling class-action lawsuit against Solana Labs, Pump.fun, and associated entities. The move reignites legal scrutiny over the network’s “fair launch” mechanics.
The December 9 ruling by the U.S. District Court for the Southern District of New York allows investors to formally argue that the Solana ecosystem’s transaction infrastructure was not merely neutral plumbing. They allege it was “structurally tilted” to extract value from retail users via Maximal Extractable Value (MEV) exploits.
The decision comes just two months after Jito Labs, the developer of the network’s dominant transaction-ordering software, successfully won a dismissal from the case. The revived complaint pivots from targeting the software developers directly to attacking the mechanism itself. It alleges that “insiders” exploited Jito’s priority tools to front-run token launches.
The ‘MEV’ Allegations: How It Worked
The lawsuit, originally filed in January 2025 by Burwick Law, centers on the explosion of the “meme coin” sector driven by the Pump.fun launchpad. Plaintiffs allege that while the platform marketed a “fair launch” model with no pre-mines, the reality was a game of speed rigged by infrastructure.
According to the amended filing, sophisticated actors allegedly used Solana’s MEV tools to view pending retail buy orders in the transaction auction space. By paying priority fees via Jito’s block engine, these insiders could theoretically:
- Front-run: Insert their own buy orders immediately before the public.
- Secure Floor Price: Buy tokens at the lowest valuation before retail demand hit.
- Exit: Sell seconds later as “exit liquidity.”
“This could get ugly for Solana,” noted Cardano ambassador @astroboysoup on X (formerly Twitter) following the ruling. “How can institutions use the chain knowing their transactions can be monitored and exploited for profit?”
Legal Ping-Pong: Jito Dismissal vs. New Claims
The case has been a volatile legal battle. In July 2025, plaintiffs expanded the suit to include RICO (Racketeer Influenced and Corrupt Organizations) charges. They named Solana co-founders Anatoly Yakovenko and Raj Gokal.
However, the defense scored a major victory in October when Skadden Arps, representing Jito Labs, secured a voluntary dismissal. They argued plaintiffs failed to prove the software developers had any control over how third parties used their tools.
The judge’s decision to allow a second amended complaint suggests the plaintiffs have refined their theory. Rather than blaming Jito for writing the code, the new complaint focuses on the coordination between the launchpad (Pump.fun) and the validators who profited from the MEV extraction.
Market Reaction
Solana (SOL) traded lower on the news. This reflects concerns that a prolonged discovery process could force the network to reveal sensitive data about validator operations.
“What appeared to be a fair, automated marketplace was, Plaintiffs say, structurally tilted,” Burwick Law stated. The firm is seeking damages for thousands of investors who claim to have lost funds in what they describe as a “digital casino” masked as innovation.
Chain Street’s Take
This lawsuit has shifted from a “scam token” case to an existential audit of Solana’s plumbing. The court’s willingness to hear the “Second Amended Complaint,” even after Jito was dismissed in October, signals that the “neutral tool” defense might not be a shield for everyone.
If discovery reveals that validators and launchpads coordinated to front-run retail, the “high-speed” chain risks being rebranded as a high-speed extraction machine. Wall Street can tolerate fees. It won’t tolerate a rigged deck.
