- Elon Musk and Tesla have won a lawsuit that alleged them of market manipulation and insider trading.
- Dogecoin investors accused Musk of manipulating the meme coin’s price, causing $258 billion in damages.
- The judge ruled that Musk’s X posts are not factual and susceptible to being falsified but aspirational.
Tech mogul Elon Musk and his company, Tesla, secured a significant win in a lawsuit that accused them of defrauding investors by manipulating the value of Dogecoin (DOGE). On August 29, 2024, U.S. District Judge Alvin Hellerstein in Manhattan dismissed claims that Musk engaged in insider trading, which allegedly caused $258 billion in damages.
A group of Dogecoin investors had filed a lawsuit against Musk in June 2023, alleging that he and Tesla used social media platforms like X to artificially inflate Dogecoin’s price by over 36,000%. The plaintiffs claimed that Musk sold his Dogecoin holdings at the peak, causing the price to plummet and resulting in investor losses.
However, Judge Hellerstein dismissed these accusations, stating that the plaintiffs made several “material misrepresentations” of Musk’s X posts about Dogecoin. The tweets acknowledged Dogecoin as the future of cryptocurrency and Musk as the official CEO of the memecoin. While the investors considered these statements manipulative, the judge ruled, “These statements are aspirational and promotional, not factual, and susceptible to being falsified […] and no reasonable investor could rely upon them.”
Musk had previously requested the court dismiss the lawsuit, which accused him of running a pyramid scheme to defraud Dogecoin investors. In April 2023, Musk’s lawyers filed a motion in Manhattan federal court, claiming that the lawsuit was a “fantastical work of fiction.” They argued that Musk’s tweets on X were innocent and did not support the allegations of fraud.
In another development, Musk won a lawsuit that alleged sexual bias on the X platform. While a class action claimed that X targeted female staff for layoffs, the court dismissed it, citing insufficient evidence for discrimination.
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