Elon Musk Dogecoin Lawsuit Dismissed by Judge

Key Points:

• A federal judge has dismissed a lawsuit against Elon Musk and Tesla alleging manipulation of Dogecoin's price.
• The lawsuit claimed that Musk's statements and actions drove up Dogecoin's value, leading to insider trading and market manipulation.

Judge Dismisses Elon Musk Dogecoin Lawsuit

According to Reuters, a federal judge has dismissed a class-action lawsuit against Elon Musk and Tesla, which accused Musk of manipulating the price of Dogecoin and causing investor losses.

District Judge Alvin Hellerstein ruled in favor of Musk on August 29, finding that the claims against him were impossible to prove.

Lawsuit Alleged Market Manipulation and Insider Trading

The amended class-action complaint, filed in June 2022, claimed that Musk used his social media platform to inflate Dogecoin's value by over 36,000%.

The plaintiffs alleged that Musk's tweets, public appearances, and stunts, such as changing Twitter's logo to the Dogecoin symbol, artificially drove up the cryptocurrency's value, enabling Musk and Tesla to profit through insider trading.

Court Finds Musk's Tweets Aspirational, Not Fraudulent

Judge Hellerstein dismissed these claims, stating that Musk's tweets about Dogecoin were "aspirational" and could not reasonably be relied on as factual statements by investors. He also found that the plaintiffs' allegations of market manipulation and insider trading were unclear and incoherent.

Lawsuit Dismissed with Prejudice

The dismissal with prejudice means that the case cannot be refiled. Lawyers for the investors have not yet commented on the ruling. Musk's legal team has previously described the lawsuit as a "fanciful work of fiction." In response to the decision, Musk's attorney, Alex Spiro, said that it was a "very good day for Dogecoin."