Elon Musk and Tesla dodged a financial bullet today.
According to the latest crypto news, Elon Musk and Tesla have successfully dismissed a lawsuit that accused them of manipulating Dogecoin’s price, allegedly causing $258 billion in damages.
The ruling was handed down on August 29 by Judge Alvin Hellerstein of the United States District Court for the Southern District of New York.
The lawsuit, filed by a group of disgruntled Dogecoin investors in June 2022, claimed that Musk had artificially inflated Dogecoin’s value by over 36,000% across two years, only to let it plummet. The investors argued that Musk had used his influence as the world’s richest man to run what they termed the “Dogecoin Pyramid Scheme.”
Central to the lawsuit were Musk’s tweets, where he humorously suggested that he might become the official CEO of Dogecoin or even launch a Dogecoin to the moon on a SpaceX vehicle.
However, Judge Hellerstein dismissed these claims, stating that such statements were “aspirational and puffery,” not factual assertions that could be relied upon by any reasonable investor.
These statements are aspirational and puffery, not factual, and susceptible to being falsified […] and no reasonable investor could rely upon them.”
Musk’s legal team had previously sought to dismiss the case, labeling the claims and the staggering $258 billion damages as a “fanciful work of fiction.”
Despite the court’s decision, the price of Dogecoin remained largely unaffected, showing a minor 0.1% increase in the past 24 hours, with the cryptocurrency currently trading at $0.10. Notably, Dogecoin has experienced a 20% decline over the past month, according to data from CoinGecko.
