Judge Clears Elon Musk of $258 Billion Dogecoin Manipulation Lawsuit
On August 29, 2024, U.S. District Judge Alvin Hellerstein dismissed a significant lawsuit against Elon Musk and his company, Tesla , which alleged market manipulation of Dogecoin (DOGE) . The lawsuit, initiated by a group of disgruntled investors in June 2022, claimed that Musk and Tesla artificially inflated the cryptocurrency’s price, resulting in a staggering $258 billion in damages. The court ruling dismissed these claims, stating they were based on non-factual statements. Court’s Decision Judge Hellerstein’s ruling characterised Musk’s statements about Dogecoin as “aspirational and puffery” rather than actionable claims. In his decision, Hellerstein emphasised that “no reasonable investor could rely upon” Musk’s social media posts or public declarations as a basis for making investment decisions. The judge specifically cited Musk’s assertions about becoming the “official CEO of Dogecoin” and placing a “literal Dogecoin” on a SpaceX rocket as examples...