Gairika Mitra
A Manhattan judge dismissed with prejudice a lawsuit accusing tech billionaire Elon Musk and his electric vehicle company, Tesla, of manipulating the price of Dogecoin (DOGE) through social media posts and public statements.
U.S. District Judge Alvin Hellerstein delivered the decision last Thursday. Musk had been facing allegations of using his platform and public appearances to influence the meme coin’s market value.
Originally, the lawsuit was filed in 2022, claiming that Musk exploited his substantial Twitter (now X) following and his 2021 appearance on NBC’s “Saturday Night Live” to affect Dogecoin’s price.
Musk also faced allegations from investors about his public statements about Dogecoin, which included bold claims such as his intention to “become Dogecoin’s CEO,” putting a “literal Dogecoin in SpaceX and fly it to the moon,” and suggesting that “Dogecoin might become the standard for the global financial system.” Investors claimed such statements were meant to boost the cryptocurrency’s value and allow him to profit at their expense.
Judge Hellerstein’s ruling rejected these claims, labeling Musk’s statements as “aspirational and puffery, not factual and susceptible to being falsified.” As per the judge, such statements are not the kind of factual representations that investors could reasonably rely upon.
Additionally, Judge Hellerstein granted the defendant’s motion to dismiss the Fourth Amended Complaint and directed the clerk to enter judgment in favor of Musk and Tesla. Furthermore, he instructed the termination of all open motions and the closure of the case.
A DeFi enthusiast who goes by the X handle @bitfinmarket expressed his views regarding the court ruling.
“District Judge Alvin Hellerstein dismissed the lawsuit against Elon Musk and the electric car manufacturer Tesla for promoting Dogecoin. An American named Keith Johnson had demanded $258 billion in damages and compensation.
“The plaintiff sought to prohibit the billionaire and his companies from promoting the cryptocurrency and to declare that trading it constitutes ‘gambling.’ In his view, the defendants manipulated the market and were involved in insider trading,” he said.
Recently, Musk has been in the news owing to Brazil banning X, after it failed to appoint a new legal representative in the nation before a court-imposed deadline. Apart from this, last month, Musk spoke in favor of California’s SB 1047 AI safety bill.
“This is a tough call and will make some people upset, but, all things considered, I think California should probably pass the SB 1047 AI safety bill,” he tweeted.
Read More
- Elon Musk and Vitalik Buterin Champion California’s AI Safety Bill: But Is It Enough?
- Elon Musk’s X Deletes Crypto Emojis: Crypto Community Baffled
- Crypto Scammers Level Up With AI-Generated Elon Musk Video
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
