Elon Musk Dogecoin Lawsuit Dismissed by Judge

Key Points:

• A federal judge dismissed a lawsuit against Elon Musk and Tesla, accusing them of manipulating Dogecoin’s price.
• The Elon Musk Dogecoin lawsuit claimed his public statements and actions caused Dogecoin’s value to spike, leading to insider trading and market manipulation.

According to Reuters, a federal judge has dismissed a class-action lawsuit against Elon Musk and his electric vehicle company, Tesla, that accused the business magnate of manipulating the price of cryptocurrency Dogecoin and causing substantial losses among investors.

Read more: Elon Musk Sues Sam Altman For Breach Of Contract With $44 Million Contribution

Judge Throws Out Elon Musk Dogecoin Lawsuit

District Judge Alvin Hellerstein ruled in favor of Musk on August 29 to the effect that the claims were impossible to prove.

The amended class-action complaint in the Elon Musk Dogecoin lawsuit, filed in June 2022 and revised at least half a dozen times since then, claimed that Musk had leveraged his public platform to pump up the value of Dogecoin with more than 36,000% before letting the cryptocurrency go into free fall and causing billions of dollars in losses.

The plaintiffs alleged that Musk’s tweets, along with public appearances and stunts including changing Twitter’s logo to Dogecoin’s Shiba Inu symbol back in April 2023, drove up the cryptocurrency’s value, which allowed Musk and Tesla in turn to engage in insider trading.

Court Finds Musk’s Dogecoin Tweets Aspirational, Not Fraudulent

Judge Hellerstein has now dismissed these claims, observing that Musk’s tweets about Dogecoin-from statements that it would be the future currency of Earth or literally sending it via SpaceX to the moon-were “aspirational” and incapable of being read as factual statements upon which investors could reasonably rely. The market manipulation and insider trading arguments by the plaintiffs were not clear and incoherent, he further held.

The dismissal with prejudice against the Elon Musk Dogecoin lawsuit means the case cannot be refiled. Lawyers for the investors have made no comment about the ruling. Musk’s legal team had earlier described the lawsuit and its claims as a “fanciful work of fiction.” In response to the decision, Musk’s attorney, Alex Spiro, hailed the result as a “very good day for Dogecoin.”