Tech billionaire and Tesla CEO Elon Musk has won the dismissal of a lawsuit that accused him and his electric automotive company of manipulating the price of Dogecoin, resulting in $258 billion in damages.
Judge Alvin Hellerstein tossed the lawsuit in an Aug. 29 decision in the US District Court for the Southern District of New York.
Judge Says No “Reasonable” Investor Would Interpret Tweets By Elon Musk As Sound Investment Advice
Several “material misrepresentations” were made regarding Musk’s tweets, according to Judge Hellerstein. In some of the posts mentioned in the case, Musk said that he would become the president of Dogecoin and would send a “literal” Dogecoin to the moon in a SpaceX vehicle.
“These statements are aspirational and puffery, not factual, and susceptible to being falsified,” said Judge Hellerstein. “No reasonable investor could rely upon them” for sound investment advice, Judge Hellerstein added.
The lawsuit against Musk and Tesla was filed in June 2022 by a group of disgruntled investors who had bought into the largest meme coin by market cap, Dogecoin. Musk was accused of driving up the crypto’s price “more than 36,000% over two years and then letting it crash.”
In the lawsuit, the investors also claimed that the tech billionaire “used his pedestal as the world’s richest man” to manipulate Dogecoin’s price and operate a DOGE “pyramid scheme.” Musk requested that the lawsuit be dismissed on March 31, with his lawyers calling the claims and subsequent request for the $258 billion in damages “fanciful work of fiction.”
Dogecoin Price Barely Reacts
In the past, the price of Dogecoin has undergone strong movements following any Musk or Tesla related developments, given Musk’s reputation as the “Doge Father.” However, the meme coin hardly moved following the recent dismissal.
Data from CoinMarketCap shows that the Dogecoin price slipped less than 1% over the last 24 hours to trade at $0.1001 as of 1:53 a.m. EST.
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