Summary
- U.S. District Judge dismissed the federal lawsuit against Tesla and Elon Musk regarding Dogecoin
- Plaintiffs alleged that Musk hyped Dogecoin, profiting billions at investors’ expense
- Judge ruled Musk’s comments were aspirational and not factual, not basis for claim
- Lawsuit dismissed with prejudice, case cannot be brought again
- Musk’s lawyers claim it’s a good day for Dogecoin, Musk warns against investing life savings in cryptocurrency
Article
Elon Musk and Tesla have successfully had a federal lawsuit alleging fraud around the cryptocurrency Dogecoin dismissed by U.S. District Judge Alvin Hellerstein. Plaintiffs had accused Musk and his companies of profiting at the expense of regular Dogecoin investors, citing Musk’s comments such as calling the cryptocurrency a “hustle” on Saturday Night Live. They also alleged that Musk intentionally inflated Dogecoin’s value before causing it to crash, seeking damages of $258 billion. However, the judge deemed Musk’s comments as aspirational and not factual, stating that no reasonable investor could rely on his tweets for a securities fraud claim.
The dismissal of the lawsuit with prejudice means that it cannot be brought again, providing relief for both Musk and Tesla after the plaintiffs had amended their complaint multiple times over the past two years. While Musk has been a vocal supporter of Dogecoin and even allowed it to be used for purchasing Tesla merchandise, he has also cautioned against investing life savings in cryptocurrency. In a 2021 interview, Musk advised that while crypto may be the future currency of Earth, it should be viewed as speculation rather than a sound investment.
Elon Musk’s lawyer, Alex Spiro, expressed that it was a good day for Dogecoin following the dismissal of the lawsuit. Despite Musk’s enthusiasm for the cryptocurrency, he has also made known the potential risks associated with investing in it. The plaintiffs’ lawyers have not provided any comments on the matter following the judge’s decision. Overall, the legal troubles surrounding Musk and Tesla in relation to Dogecoin appear to have come to an end with the dismissal of the lawsuit, allowing them to move forward without the threat of further legal action.
Musk’s comments and social media posts regarding Dogecoin were deemed to be aspirational rather than factual, according to Judge Hellerstein. The judge highlighted that Musk’s statements could not form the basis for a securities fraud claim, further supporting the decision to dismiss the lawsuit. This outcome should provide clarity and closure for Musk and Tesla, as they can now focus on other endeavors without the burden of legal disputes surrounding their involvement with Dogecoin.
Overall, the dismissal of the Dogecoin lawsuit marks the end of legal troubles for Elon Musk and Tesla in this particular matter. The judge’s ruling, which dismissed the case with prejudice, prevents the lawsuit from being brought again, offering a sense of finality to the situation. While Musk continues to show support for Dogecoin, he has also advised caution when it comes to investing in cryptocurrency, emphasizing the speculative nature of such investments. With this legal battle behind them, Musk and Tesla can now concentrate on their core business operations without the distraction of ongoing litigation.
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