Australian rapper Iggy Azalea has been named in a U.S. class action lawsuit alleging that her $MOTHER (MOTHER) memecoin was sold to retail buyers using misleading utility claims.
Lawsuit Filed In Manhattan
The complaint was filed in the U.S. District Court for the Southern District of New York, according to AMBCrypto. Plaintiff Christopher Smith says he and other investors were misled into buying the token.
The filing alleges that $MOTHER was promoted as the centerpiece of an ecosystem covering telecom services, an online casino, and a luxury marketplace.
According to the complaint, several of those integrations either never launched or did not meaningfully rely on the token. The Motherland casino, for example, ran on stablecoins rather than on $MOTHER, undermining the project's main utility claim.
The lawsuit does not argue that $MOTHER is a security. Instead, it focuses on consumer protection, alleging deceptive business practices and false advertising.
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Insider Activity Cited
Plaintiffs also point to early on-chain activity flagged by analysts shortly after the token went live.
Blockchain analytics firm Bubblemaps reported in May 2024 that wallets acquired about 20% of the supply before the contract address was public, then sold roughly $2 million worth of tokens soon after trading opened.
Azalea has previously denied dumping tokens herself.
The complaint also references partnerships with market makers Wintermute and DWF Labs, arguing that the structure of those deals was not fully disclosed to retail buyers.
Smith argues that the combined picture, paired with the utility marketing, created a misleading impression of long-term value and adoption.
$MOTHER Price History
The token launched on Solana (SOL) in May 2024, during a wave of celebrity memecoins that included tokens tied to Caitlyn Jenner and Hailey Welch.
It briefly touched a market capitalization of about $200 million in mid-2024, after a partnership with DWF Labs sent the price up as much as 50% in one session.
The token has since lost roughly 99.5% of its value, according to the complaint, with its market capitalization now near $1 million. CoinGecko and CoinMarketCap data confirm the collapse, listing MOTHER under $0.0013 at press time.
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