Elon Musk and Tesla Inc. successfully had a lawsuit dismissed that accused them of manipulating the price of dogecoin (DOGE) for personal gain. A U.S. District Judge in Manhattan ruled that the plaintiffs failed to provide convincing evidence, despite multiple revisions of their claims. The lawsuit alleged that Musk’s social media influence caused a 36,000% surge in dogecoin’s price, followed by a crash that led to investor losses.
Dogecoin Manipulation Lawsuit Against Elon Musk and Tesla Dismissed
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Court Clears Musk and Tesla of Dogecoin Manipulation Allegations
A lawsuit alleging that Elon Musk and his companies Tesla and Spacex artificially inflated dogecoin’s price was dismissed by U.S. District Judge Alvin Hellerstein in Manhattan on Thursday. The judge ruled in favor of Musk, stating the plaintiffs failed to substantiate their claims.
Dogecoin investor Keith Johnson filed a class-action lawsuit against Musk and his companies in June 2022. The lawsuit claimed that Musk, Tesla, and Spacex are involved in a crypto pyramid or Ponzi scheme using DOGE. The plaintiff claims that dogecoin is “simply a fraud” that deceives investors into buying at inflated prices.
The plaintiffs argued that Musk used his social media influence and high-profile public appearances, such as his 2021 hosting of NBC’s Saturday Night Live, to artificially inflate dogecoin’s price by over 36,000% over two years. They alleged that after driving up the price, a crash occurred, leading to heavy losses for investors while Musk and Tesla supposedly profited by carefully timing their trades based on Musk’s public endorsements of the cryptocurrency.
In April 2023, Musk sought to have the case thrown out. His legal team argued that there was no law against posting supportive or humorous tweets about a legitimate cryptocurrency that has a market cap nearing $10 billion. They labeled the lawsuit as a “fantasy” and urged the court to dismiss it.
Musk’s legal team noted that the plaintiffs had failed to make a convincing case despite multiple revisions of their lawsuit, which initially sought $258 billion in damages. They contended that Musk’s tweets were harmless and playful, and there was no evidence linking Musk or Tesla to the alleged suspicious trading activities or sales of dogecoin.
What are your thoughts on the court’s decision to dismiss the lawsuit against Elon Musk regarding dogecoin manipulation? Share your views in the comments section below.
