Jahn-Teller effect is typically observed in non linear molecules with asymmetric crystal fields (i.e. non spherical ligand fields) such as, octahedral and tetrahedral complexes.
The rule states that "any non-linear molecular system in a degenerate electronic state will be unstable and will undergo distortion to form a system of lower symmetry and lower energy, thereby removing the degeneracy".
So, how a linear molecule keep its degeneracy and stability simultaneously ??