Musk's Dogecoin Lawsuit Dismissed: A Legal Victory
A federal judge dismisses a $258 billion lawsuit against Elon Musk, ruling his statements about Dogecoin were mere "puffery" and not grounds for securities fraud.
Highlights:
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Judge rules Musk's Dogecoin comments were not actionable.
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Plaintiffs plan to appeal the dismissal of their lawsuit.
In a major legal victory for Elon Musk and Tesla, a federal judge has dismissed a $258 billion lawsuit that accused them of manipulating the price of Dogecoin. The class action lawsuit, filed in June 2022, alleged that Musk intentionally drove up Dogecoin's price by over 36,000% over two years through a "deliberate course of carnival barking, market manipulation and insider trading".
Investors claimed Musk used Twitter posts, his appearance on Saturday Night Live, and other publicity stunts to trade profitably at their expense through Dogecoin wallets controlled by him or Tesla. This included Musk selling about $124 million worth of Dogecoin in April 2023 after replacing Twitter's logo with Dogecoin's Shiba Inu dog, leading to a 30% price jump.
However, U.S. District Judge Alvin Hellerstein dismissed the lawsuit, ruling that Musk's statements were "aspirational puffery" rather than factual. The judge stated that "no reasonable investor could rely upon them" as the basis for securities fraud.
Musk's lawyer Alex Spiro expressed relief and pleasure at the "extremely fantastic" outcome for Dogecoin.
While disappointed, the plaintiffs' attorney Evan Spencer plans to appeal, arguing Musk's statements went beyond puffery and caused billions in losses.
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