Solana Legal Battle Deepens as Plaintiffs File Amended Complaint

A U.S. federal judge has granted the plaintiffs in the ongoing class-action lawsuit against Pump.fun and Solana Labs permission to file a second amended complaint (SAC). The decision allows new evidence from a confidential informant to be included in the expanded case. This ruling, issued on December 9 by Judge Colleen McMahon of the Southern District of New York, marks a new phase in a lawsuit that could shape how blockchain infrastructure providers face legal accountability in token launch schemes.

Court allows new complaint after informant returns with chat logs

According to newly filed court documents, a previously unreachable informant reestablished contact with the plaintiffs’ legal team in early September. The whistleblower provided almost 5,000 internal chat logs that reportedly contained discussions among personnel from Pump.fun, Solana Labs, Jito Labs, and other entities.

The court noted that this evidence “bears directly on the operation and management of the alleged Pump Enterprise,” providing factual details that strengthen the plaintiffs’ claims. The plaintiffs have argued that their proposed amendments are necessary to reflect new information, and the judge agreed that the changes are timely and justified.

Judge McMahon stated that the plaintiffs acted “promptly after receiving the new evidence,” adding that the amendments are “neither transformative nor prejudicial.” She also wrote that discovery has not yet begun, meaning the defendants would not face major delays due to the new complaint.

Plaintiffs allege unfair advantage through Solana infrastructure

At the center of the case are claims that Pump.fun was not a fair, automated marketplace as it appeared to be. According to the plaintiffs,

“What appeared to be a fair, automated marketplace was, Plaintiffs say, structurally tilted to extract value from ordinary users while rewarding those with privileged access to Solana’s infrastructure and Jito Lab’s transaction ordering tools.”

The lawsuit alleges that insiders used Solana’s validator system and Jito Labs’ transaction tools to gain priority execution during token launches. This system allegedly allowed insiders to acquire tokens at low prices before retail investors could access them, driving up prices artificially through Pump.fun’s bonding curve mechanism.

Retail participants then bought in at inflated prices and suffered heavy losses when token values collapsed shortly after insiders had sold their holdings.

The plaintiffs claim this structure created a “rigged launch environment” designed to benefit those with technical advantages while leaving ordinary investors at a disadvantage.

Details of the court’s decision and next steps

The court order grants the plaintiffs, including Diego Aguilar, Kendall Carnahan, and Michael Okafor, official permission to file the second amended complaint. The ruling also addresses procedural disputes between the parties.

Defendants had attempted to block the amendment, arguing the plaintiffs failed to attach a complete version of their proposed complaint. However, Judge McMahon rejected that motion, giving the plaintiffs additional time to integrate the new materials before filing.

Once submitted, the new filing could reset pending motions to dismiss that were filed in September. The plaintiffs have also asked the court to modify the filing schedule to allow adequate time to process the evidence before formal submission.

This decision allows the litigation to proceed with expanded evidence and refined allegations that link token launch mechanics to Solana’s network design.

Reaction from the broader market

News of the court ruling arrived just as Solana’s ecosystem saw significant volatility. Data from Coingecko shows that the BONK.fun ecosystem, viewed by some traders as a competitor to Pump.fun, saw its market capitalization double shortly after the decision.

The lawsuit has triggered concern among analysts and participants across the Solana community. Pete, an X user and Cardano ambassador, said on X that this lawsuit "could get ugly for Solana" and "could even start its downfall."

Crypto analyst Dagnum P.I. described the developments as a potential “breaking point” for Solana, arguing that the case highlights structural questions about fairness in transaction processing and validator behavior.

The outcome of the legal proceedings could set an important precedent for how courts view blockchain infrastructure responsibilities when insiders allegedly gain priority access to token sales.

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