FameEX Hot Topics | Elon Musk and Tesla Win Dogecoin Manipulation Lawsuit

A U.S. District Court Judge has dismissed a high-profile lawsuit against Elon Musk and Tesla, which accused them of manipulating the price of Dogecoin, allegedly causing $258 billion in damages. The court concluded that “no reasonable investor” would rely on Musk’s tweets about Dogecoin for investment decisions. This decision marks a notable victory for Musk and his company.

The lawsuit was thrown out on August 29 by U.S. District Judge Alvin Hellerstein of the Southern District of New York. Judge Hellerstein highlighted that the case centered around "material misrepresentations" of Musk’s tweets about Dogecoin. Among these tweets were Musk’s humorous claims about becoming Dogecoin’s CEO and his suggestion that a “literal” Dogecoin could be launched to the moon via a SpaceX rocket.

Judge Hellerstein further emphasized that “no reasonable investor” would use Musk’s tweets as sound investment advice. The original lawsuit, filed in June 2022, accused Musk of artificially inflating Dogecoin’s value by over 36,000% within two years, only to let it crash. The investors also alleged that Musk exploited his status as the world’s richest man to operate what they described as a “Dogecoin Pyramid Scheme.”

In response to the lawsuit, Musk’s legal team moved for dismissal on March 31, arguing that the claims and the $258 billion demand in damages were nothing more than a “fanciful work of fiction” presented in Manhattan’s federal court. The court agreed with this assessment, resulting in the case being dismissed.

Following the dismissal, Dogecoin’s market reaction was subdued. The cryptocurrency’s price saw little change, with only a 0.1% increase over the last 24 hours. At the time of the court ruling, Dogecoin was trading at $0.10, though it had experienced a 20% decline over the past month, according to data from CoinGecko.

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