Elon Musk and Tesla Win Legal Battle as Dogecoin Lawsuit is Thrown Out

Federal Court Dismisses Lawsuit Against Elon Musk and Tesla Over Dogecoin Allegations

A federal court in Manhattan has dismissed a lawsuit alleging that Elon Musk and Tesla Inc. defrauded investors through the cryptocurrency Dogecoin. The lawsuit was filed in June 2023.

Plaintiffs' Claims

The plaintiffs claimed that Musk and Tesla manipulated the Dogecoin market, causing its value to rise by over 36,000%. They argued that Musk's social media promotions and endorsement of Dogecoin as payment for Tesla merchandise artificially inflated its price.

Musk's Influence

The plaintiffs accused Musk of using his influence to drive up the value of Dogecoin and then profiting from its subsequent decline. They pointed to specific statements, such as his tweet saying "One word: Doge," and the announcement that Tesla would accept Dogecoin for merchandise, as evidence of market manipulation.

Court's Ruling

Judge Hellerstein dismissed the plaintiffs' claims, stating that Musk's comments about Dogecoin were not fraudulent but were rather aspirational in nature. The court determined that statements about Dogecoin being the "future currency of Earth" or being used to buy Teslas were promotional rather than actionable fraud.

Additionally, the court found no substantial evidence to support claims that Musk or Tesla engaged in unfair market manipulation or insider trading related to Dogecoin.

Musk and Tesla's Response

Musk and Tesla welcomed the court's decision, viewing it as a vindication of their actions. Musk has previously stated that his comments about Dogecoin were humorous and not intended to mislead investors.

Current Status of Dogecoin

At the time of writing, Dogecoin is trading at $0.1009, showing minimal change over the last 24 hours.