Elon Musk and his company, Tesla, have won the dismissal of a class action lawsuit that accused Musk of manipulating the Dogecoin market through his public statements. The lawsuit was permanently dismissed by U.S. District Judge Alvin Hellerstein.
Allegations Against Musk
In June 2022, a group of investors filed a lawsuit against Musk, alleging that his comments about Dogecoin, including jokes about being the "CEO of Dogecoin" and plans to "put a Dogecoin on the moon," had misled the market and harmed investors. The lawsuit claimed that Musk's actions constituted market manipulation.
Judge's Ruling
Judge Hellerstein dismissed the case with prejudice, meaning it cannot be refiled. He stated that Musk's comments were "aspirational and puffery," not factual statements that could be proven false. The judge also found the allegations of market manipulation and insider trading unsubstantiated.
Following the dismissal, Dogecoin's market response was muted, with the cryptocurrency's price edging down slightly.
Read more at The Block.
