On August 29th, 2024, Judge Alvin Hellerstein dismissed the case.
This decision delivered a significant victory for Musk and Tesla in the high-profile legal battle. Let’s discover more about this important news for Dogecoin.
Judge Dismisses Lawsuit Against Musk and Tesla
The lawsuit originated in June 2022 when a group of disgruntled Dogecoin investors sued Musk and Tesla. It claims that Musk’s tweets and public statements about Dogecoin were part of a deliberate scheme to inflate the cryptocurrency’s value.
The plaintiffs argued that Musk’s actions, including his playful declaration, that he would become the “official CEO of Dogecoin” and his suggestion that a SpaceX vehicle might carry a “literal” Dogecoin to the moon, misled investors and artificially pumped up the price of the meme-inspired cryptocurrency.
Source: X
However, in his ruling, Judge Hellerstein dismissed these claims, stating that the plaintiffs failed to demonstrate that Musk and Tesla engaged in any unlawful activity. The judge emphasized that “no reasonable investor” could have relied on Musk’s tweets as a basis for making sound investment decisions. He pointed out that while Musk’s statements may have been exaggerated or humorous, they did not constitute the kind of “material misrepresentation” required to sustain a market manipulation claim.
The dismissal of this lawsuit underscores the challenges of holding public figures accountable. It highlights the difficulty of assessing the impact of their social media activity on volatile markets like cryptocurrency. Musk, known for his unpredictable and often tongue-in-cheek tweets, has long supported Dogecoin. He frequently shares memes and makes lighthearted comments about the digital currency. Judge Hellerstein’s decision suggests that Musk’s commentary, even from influential figures, isn’t considered investment advice.
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