Elon Musk and Tesla have won a federal lawsuit that accused them of manipulating the price of Dogecoin, which supposedly caused investors to lose a lot of money. The investors who filed the lawsuit claimed that Musk misled them by promoting Dogecoin on social media and in public, and they demanded $258 billion in damages.
However, U.S. District Judge Alvin Hellerstein decided that Musk’s comments about Dogecoin were just “aspirational” and not factual, so no reasonable investor would have taken them seriously. The judge also mentioned that the accusations of a “pump and dump” scheme were unclear.
The Judgement reads, “As for Musk and Tesla’s alleged “pump and dump” scheme, it is not possible to understand the allegations that form the basis of Plaintiffs’ conclusion of market manipulation, a “pump and dump” scheme, a breach of a fiduciary duty amounting to insider trading, or the state law claims.”
“Defendant’s motion to dismiss the Fourth Amended Complaint is granted with prejudice. The Clerk shall enter judgment in Defendants’ favor and tax costs, dismiss the Fourth Amended Complaint with prejudice, terminate all open motions, and mark the case closed.”
Musk’s lawyers argued that the investors didn’t have a strong case, even after trying to revise their lawsuit several times.
Elon Musk has been sued multiple times over allegations of manipulating the price of Dogecoin, with the most prominent lawsuit being the one filed in June 2022. This particular lawsuit sought $258 billion in damages, accusing Musk of promoting Dogecoin as part of a “pyramid scheme” through his tweets and public statements.
While there may be other lawsuits or legal actions related to Dogecoin, the June 2022 case is the most well-known and widely reported.
Musk’s influence over the price of Dogecoin through his public comments has led to legal challenges, but most of these lawsuits have been dismissed or are ongoing. The number of times he has been sued specifically for Dogecoin manipulation isn’t precisely documented, but the June 2022 lawsuit is the most significant in scale and public attention.
While there has been sentiment in favour of Musk adopting Doge as the currency for X (Twitter), Elon stated a year ago that he has zero interest in launching a crypto token on X.
