A class-action lawsuit has been filed in the Southern District of New York against Pump.Fun alleging violations of federal securities laws. The complaint claims that Pump.Fun operated as an unregistered securities issuer and facilitated fraudulent practices, including "pump-and-dump" schemes where token prices were artificially inflated and later collapsed, leaving investors with significant losses. The plaintiff, Kendall Carnahan, argues that Pump.Fun’s tokens, such as PNUT, qualify as securities under the Howey Test, as they involved investments made with the expectation of profits derived from the efforts of the platform and its co-founders. The lawsuit seeks remedies including rescission of investments, compensatory damages, and legal fees to protect retail investors and uphold market integrity.