Magic Eden, one of the most recognizable names in the NFT marketplace world, is now staring down a class action lawsuit over its $ME token. The complaint alleges the company and its leadership sold investors on a vision of multi-chain utility and decentralized governance that, according to the plaintiffs, simply didn’t show up.
The lawsuit, Pagan v. Lu (Case No. 1:26-cv-3608), was filed on June 16, 2026, in the US District Court for the Eastern District of New York. It has been accepted by the court, and the plaintiffs are seeking class status on behalf of everyone who purchased the $ME token.
What the lawsuit actually claims
Three plaintiffs, Jaime Pagan, Ariel Ruano, and Chris Sadowski, are leading the charge. Their core argument: Magic Eden promoted the $ME token as essential to a robust online asset marketplace with multi-chain capabilities and voting rights through a proposed “ME DAO.” The complaint alleges those promised features either never materialized or arrived far too late to matter.
The named defendants cast a wide net. Magic Eden itself is on the hook, along with its operating entity Euclid Labs Inc. and the ME Foundation. The suit also names four co-founders individually: Jack Lu, Zhuoxun Yin, Sidney Zhang, and Zhuojie Zhou.
