Elon Musk Wins Dismissal of $258 Billion Dogecoin Manipulation Lawsuit

Elon Musk Triumphs in Dismissal of $258 Billion Dogecoin Lawsuit

Tesla CEO Elon Musk has successfully dismissed a high-profile lawsuit accusing him and the company of manipulating the price of Dogecoin (DOGE), the popular meme-based cryptocurrency.

On Thursday, U.S. District Judge Alvin Hellerstein ruled in favor of Musk and Tesla, dismissing the claims filed by a group of disgruntled investors.

Tweets Deemed "Puffery" and Non-Actionable

The lawsuit, filed in June 2022, alleged that Musk and Tesla inflated the price of DOGE through social media and public statements, subsequently crashing its value and causing significant financial losses for investors.

Judge Hellerstein dismissed the accusations, ruling that Musk's statements were "aspirational" and constituted "puffery" rather than actionable claims. He determined that the statements were not "factual and susceptible to being falsified" and that "no reasonable investor could rely upon them" for investment decisions.

The complainants had cited several tweets from Musk, including his declaration of becoming "the official CEO of Dogecoin" and his claim of potentially sending a "literal Dogecoin" to the moon on a SpaceX rocket.

Lack of Evidence for Pump and Dump Scheme

The investors also accused Musk and Tesla of participating in a "pump and dump" scheme with Dogecoin. However, the judge found that they failed to provide a clear and plausible explanation of how this occurred.

"It is not possible to understand the allegations that form the basis of plaintiffs' conclusion of market manipulation," Hellerstein stated in his decision.

Musk's legal team had previously sought the dismissal of the case, arguing that the investors had not demonstrated Musk's intent to defraud or concealment of risks. They maintained that his tweets, including statements like "Dogecoin Rulz" and "no highs, no lows, only Doge," were too vague to support fraud claims.

The attorneys asserted that the court should reject the plaintiffs' "fantasy" and dismiss the complaint.