Elon Musk and Tesla have won the dismissal of a $258 billion lawsuit accusing them of manipulating Dogecoin's price. A judge ruled no reasonable investor would rely on Musk's tweets.
Elon Musk, the billionaire CEO of Tesla, and his company have emerged victorious in a high-profile lawsuit accusing them of manipulating the price of Dogecoin, the popular meme cryptocurrency. The lawsuit, which sought a staggering $258 billion in damages, was dismissed by a US District Court Judge who ruled that no reasonable investor could have relied on Musk's tweets for sound investment decisions.
Key Points:
Lawsuit Dismissed: A US District Court Judge dismissed the $258 billion lawsuit against Elon Musk and Tesla on August 29.
Judge's Ruling: The judge stated that Musk's tweets about Dogecoin were "aspirational and puffery" rather than factual, meaning they couldn’t be considered reliable for investment purposes.
Investor Claims: The lawsuit, filed in June 2022 by a group of Dogecoin investors, accused Musk of inflating Dogecoin's price by over 36,000% and then letting it crash.
Musk's Response: Musk's legal team described the lawsuit as a “fanciful work of fiction,” and the court ultimately agreed, dismissing the case.
Dogecoin's Market Impact: Following the dismissal, Dogecoin’s price remained largely unaffected, trading at $0.10.
The dismissal of the $258 billion lawsuit is a significant victory for Elon Musk and Tesla, reinforcing the notion that Musk's social media posts, though influential, are not a basis for legal action over market manipulation. As the crypto world continues to evolve, the ruling serves as a reminder of the risks involved in following high-profile figures for investment advice.
Source: Cointelegraph
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