The Case against Elon Musk and Tesla for Dogecoin Market Manipulation Dismissed
A Manhattan court has definitively dismissed a lawsuit accusing Elon Musk and Tesla of market manipulation of Dogecoin, filed by investors in 2022.
The plaintiffs claimed that Musk had used his influence on social media to manipulate the price of DOGE, citing his appearance on ‘Saturday Night Live’ in 2021.
Judge Alvin Hellerstein ruled that Musk’s statements were exaggerations or aspirations, not concrete facts, and concluded that the lawsuit could not proceed.
Tech mogul Elon Musk and his company Tesla recently scored a significant legal victory as a Manhattan court definitively dismissed a lawsuit accusing them of manipulating the Dogecoin market.
The lawsuit, filed by a group of investors in 2022, alleged that Musk had exploited his influence on social media, particularly on X (Twitter at the time), to manipulate the price of DOGE.
Accusations Based on Twitter Statements
The plaintiffs argued that Elon Musk had used his massive social media following and media appearances, including his appearance on ‘Saturday Night Live’ in 2021, to manipulate the price of Dogecoin in his favor. They claimed that Musk, as an influential public figure, intentionally influenced the price of DOGE to benefit from his own investments in the cryptocurrency, to the detriment of other investors.
Among the statements highlighted in this case were Musk’s claims to become the ‘CEO of Dogecoin’, his promise to ‘put a literal Dogecoin on SpaceX and send it to the moon’, and his suggestion that ‘Dogecoin could become the standard of the global financial system’.
A Legal Interpretation of Elon Musk’s Statements
However, Judge Alvin Hellerstein ruled in favor of Musk and Tesla, stating that the statements in question were primarily expressions of aspirations or exaggerated boasts, rather than concrete facts or legally binding promises. According to the judge:
No reasonable investor could rely on these statements to make investment decisions.
As a result, Hellerstein concluded that the lawsuit could not proceed, dismissing the amended fourth version of the complaint with prejudice. This decision closes the case, preventing the plaintiffs from refile it.
This case marks the end of a controversial chapter surrounding Elon Musk and his relationship with Dogecoin, hinting at potentially stricter future regulations regarding the influence of social media on financial markets.
