U.S. District Judge Alvin Hellerstein dismissed the case, stating that Musk’s comments were “aspirational and puffery, not factual and susceptible to being falsified.” The judge concluded that no reasonable investor could have relied on Musk’s tweets for investment decisions, and thus, the claims of securities fraud were unfounded Teslarati and Yahoo Finance Canada and Cointelegraph
On Thursday, a U.S. federal judge ruled to dismiss a class action lawsuit that accused Elon Musk and Tesla of manipulating the market through enthusiastic public endorsements of Dogecoin. The plaintiffs, representing investors who alleged financial losses from Musk’s social media comments over recent years, had initially sought $86 billion in damages. This amount could have tripled to $258 billion with additional claims.
The documents the judge submitted today dismissing Elon Musk’s insider trading case related to Dogecoin, which originally sought $258 billion in damages, are absolutely hilarious 😂 pic.twitter.com/we8Ox8ouOG
— Sir Doge of the Coin ⚔️ (@dogeofficialceo) August 29, 2024
The core of the lawsuit focused on Musk’s numerous statements about Dogecoin, mostly shared via posts on X (previously known as Twitter) between 2021 and 2023. The plaintiffs contended that Musk’s comments were misleading and had caused substantial financial detriment. However, U.S. District Judge Alvin K. Hellerstein, in a concise two-page decision, declared these statements to be merely “aspirational and puffery,” indicating they were not factual nor actionable under law. He emphasized that no reasonable investor would base decisions on such comments.
The legal action, initiated in June 2022 and modified four times, escalated last year with the addition of an insider trading allegation. It also included claims against Tesla’s legal counsel, accusing them of harassment, which were described as “unfounded and audacious” by the defense.
Judge Hellerstein expressed that the broader accusations from the plaintiffs, which included market manipulation and breach of fiduciary duties linked to insider trading, were too vague to proceed.
🚀 Court dismisses the $258B lawsuit against @elonmusk over #Dogecoin! The future remains bright for DOGE as it continues to hold strong in the #crypto space.
Time to gear up with our top-performing $DOGE & $LTC miners!
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🔗https://t.co/wUnD9kD6jp pic.twitter.com/LLHrAKHGrK— Coin Mining Central (@mining_central) August 30, 2024
Representatives for the plaintiffs voiced their disagreement with the ruling to Decrypt, insisting that Musk’s public pronouncements were significant and misleading, causing severe financial losses. They conveyed a sense of injustice, remarking on the impunity perceived among the wealthiest, like Musk, and indicated plans to seek justice at the Second Circuit Court of Appeals, which has previously ruled against Musk.
The narrative of the case highlighted Musk’s prominent engagements with Dogecoin, including his references during an appearance on Saturday Night Live and announcements about using Dogecoin for a SpaceX mission to the moon. His public affection for Dogecoin continued unabated during the legal proceedings, highlighted by a three-day period when X’s logo featured the Dogecoin Shibu Inu mascot.
Federal judge dismisses $258B class action lawsuit accusing @elonmuskof @dogecoin manipulation
but what’s shocking is that doge was not even able to pump 10% after the news
new #memecoins killing the OG ? pic.twitter.com/oggAHk2k9r
— LA𝕏MAN (@Theblockvlog) August 30, 2024
Dogecoin, initially started in 2013 as a playful take on cryptocurrency, has ascended to significant prominence, ranking among the top ten cryptocurrencies by market capitalization as of April 2021.
Major Points:
- A federal judge dismissed a class action lawsuit accusing Elon Musk and Tesla of market manipulation related to Musk’s endorsements of Dogecoin on social media.
- The plaintiffs sought $86 billion in damages, potentially tripling to $258 billion, claiming significant financial losses due to Musk’s statements.
- The judge ruled that Musk’s statements were aspirational and categorized as “puffery,” stating they could not be the basis of a lawsuit as no reasonable investor would rely on them.
- The lawsuit was amended to include accusations of insider trading and harassment by Tesla’s legal counsel, which the judge found unclear and unsubstantiated.
- Despite the legal battle, Musk continued to publicly support Dogecoin, including altering X’s (formerly Twitter) logo to feature the Dogecoin mascot. Plaintiffs plan to appeal the decision at the Second Circuit Court of Appeals.
Conner T – Reprinted with permission of Whatfinger News
