Key Takeaways:
- The $258 billion lawsuit against Elon Musk and Tesla for allegedly manipulating Dogecoin's price was dismissed by the U.S. District Court.
- Judge Hellerstein ruled that Musk's Dogecoin tweets were "aspirational and puffery," not actionable investment advice.
- Dogecoin’s price remained largely unaffected by the lawsuit’s dismissal, showing a minor 0.79% decrease in the last 24 hours.
YEREVAN (CoinChapter.com) — Elon Musk and Tesla have avoided a $258 billion lawsuit accusing them of manipulating Dogecoin’s price after the U.S. District Court for the Southern District of New York dismissed the case on Aug. 29. Notably, U.S. District Judge Alvin Hellerstein ruled that Musk’s tweets about Dogecoin were “aspirational and puffery, not factual,” adding that “no reasonable investor” could rely on Musk’s tweets for investment decisions.
The lawsuit, filed by a group of Dogecoin investors in June 2022, alleged that Musk and Tesla manipulated Dogecoin’s price by over 36,000% within two years, then allowed it to crash. The investors claimed Musk used his status as the world’s richest man to run a Dogecoin “Pyramid Scheme.”
Musk’s Tweets Were Exaggerated
Judge Hellerstein rejected the investors’ claims, noting that Musk’s statements were often exaggerated or humorous. The court found that Musk’s tweets did not constitute a deliberate attempt to mislead investors or create a pyramid scheme. Musk’s legal team had described the lawsuit as a “fanciful work of fiction.”
The dismissal ends the investors’ pursuit of $258 billion in damages. The ruling highlights the court’s stance on interpreting high-profile individuals’ statements on social media.
Dogecoin Remains Steady Amid Legal Dismissal and Market Trends
Dogecoin’s price showed little reaction to the lawsuit’s dismissal. It decreased by 0.79% in the last 24 hours, trading at around $0.1001. Over the past month, Dogecoin has declined by 20%.
The lack of market movement suggests that the dismissal did not surprise investors. The cryptocurrency’s recent decline aligns with broader market trends rather than any direct consequence of the lawsuit.
