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Elon Musk, Tesla Win Dismissal of Lawsuit Alleging Dogecoin Market Manipulation
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Shaurya Malwa
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A Manhattan judge permanently dismissed a lawsuit that alleged Elon Musk and Tesla manipulated the price of dogecoin (DOGE) by exploiting Musk’s social media influence and public statements.
Judge Alvin Hellerstein said Musk’s statements about dogecoin were “aspirational and puffery,” not factual claims, and thus, no reasonable investor would rely on them.
A Manhattan judge permanently dismissed a lawsuit alleging Elon Musk and his electric-car company, Tesla, manipulated the price of dog-themed token dogecoin (DOGE) using postings on X (then Twitter) and in public appearances.
U.S. District Judge Alvin Hellerstein issued the decision on Thursday night. In 2022, investors accused Musk of using his Twitter following and a 2021 appearance on NBC’s “Saturday Night Live,” among other instances, to influence the memecoin’s price and allegedly take profits on his suspected DOGE holdings at their expense.
Some of Musk’s statements in that lawsuit included his claims to “become Dogecoin’s CEO,” put a “literal Dogecoin in SpaceX and fly it to the moon,” and that “Dogecoin might become the standard for the global financial system.”
Hellerstein said the statements were “aspirational and puffery, not factual and susceptible to being falsified,” adding that “no reasonable investor could rely upon them.”
“Defendants’ motion to dismiss the Fourth Amended Complaint is granted with prejudice,” Hellerstein wrote in the judgment. “The Clerk shall enter judgment in Defendants’ favor and tax costs, dismiss the Fourth Amended Complaint with prejudice, terminate all open motions, and mark the case closed.”
