A lawsuit accusing Elon Musk and his electric car company Tesla of manipulating the price of Dogecoin, causing $258 billion in losses, has been dismissed.
The lawsuit was dismissed on August 29 by U.S. District Judge Alvin Hellerstein of the Southern District of New York.
Judge Hellerstein said the defendants made several “material misrepresentations” in response to Musk’s tweets about Dogecoin, including that Musk would become the official CEO of Dogecoin and that Musk could “literally” put Dogecoin on a SpaceX vehicle and fly it to the moon.
“These statements are wishful thinking, exaggerated, untrue, subject to falsification (…) and cannot be relied upon by a rational investor.”
Judge Hellerstein said a “reasonable investor” could not expect Elon Musk’s tweets to provide sound investment advice. Source: Pacer
A group of disgruntled Dogecoin (DOGE) investors filed a lawsuit against Musk and Tesla in June 2022, seeking a whopping $258 billion in damages from Musk.
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Investors accused Musk of “driving the price of Dogecoin by more than 36,000% in two years and then crashing it.” They also alleged that Musk “used his position as the richest man in the world to run and manipulate the Dogecoin pyramid scheme.”
Musk filed a motion to dismiss the lawsuit on March 31, with his lawyers describing the claims and the $258 billion damages request as “ridiculous fiction” in Manhattan federal court.
Dogecoin’s price remained flat following the news of the layoffs, rising 0.1% over the past 24 hours. At the time of publication, Dogecoin is trading at $0.10, down 20% over the past month, according to CoinGecko data.
Dogecoin has been trading sideways over the last 24 hours, but is down 20% this month. Source: CoinGecko.
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