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Elon Musk, together with Tesla, his electric vehicle company, successfully dismissed a federal lawsuit that accused them of manipulating Dogecoin, leading to significant financial losses for investors.
US District Judge Alvin Hellerstein in Manhattan issued the ruling on Aug. 29, according to a court filing.
Investors initiated legal action against Musk and Tesla in June 2022. At that time, Musk was accused of influencing Dogecoin’s price through his presence on Twitter, appearances on “Saturday Night Live,” and various promotional activities.
It was alleged that he sold Dogecoin during periods when his actions, such as altering Twitter’s logo to feature the Dogecoin Shiba Inu dog, were anticipated to boost its value. This approach was said to have enabled him to gain from insider trading.
Additionally, the lawsuit asserted that Musk intentionally manipulated the market through public endorsements and comments regarding Dogecoin, which misled investors. The suit also characterized these actions as “puffery” rather than grounded in reality.
Elon Musk Describes Dogecoin Lawsuit as ‘Fanciful Work of Fiction’
Consequently, the plaintiffs sought $258 billion in damages, attributing the alleged decline in Dogecoin’s value to Musk’s influence.
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However, on March 31, 2023, Musk filed a motion to dismiss the lawsuit. In his defense, Musk’s legal representatives referred to the claims and the $258 billion damage demand as a “fanciful work of fiction.” They consequently argued for the dismissal of the case.
Judge Determines Musk’s Dogecoin Tweets Were ‘Puffery,’ Dismisses Fraud Claims
The judge noted that the defendants misinterpreted several of Musk’s tweets regarding Dogecoin. For instance, they misrepresented his assertion of becoming Dogecoin’s official CEO and his intention to send a physical Dogecoin to the moon aboard a SpaceX vehicle.
Hellerstein remarked that Musk’s tweets were “aspirational and puffery, not factual and subject to being falsified.”
Moreover, the judge concluded that no reasonable investor could base a securities fraud claim on Musk’s tweets. In his opinion, it was “not possible to understand” how these tweets supported the investors’ claims of market manipulation and insider trading. As a result, the court dismissed the allegations.
Dogecoin was last down 0.3% on the day, trading at approximately $0.10.
The post Court Dismisses Dogecoin Manipulation Claims Against Elon Musk and Tesla appeared first on Cryptonews.
