Elon Musk and his company Tesla have won a major legal battle, as a federal judge in Manhattan dismissed a lawsuit that accused the billionaire of defrauding investors by rigging the cryptocurrency Dogecoin.
The lawsuit which was filed back in June 2023 claimed that Musk and Tesla used social media and other publicity to drive up the price of Dogecoin by over 36,000%. The plaintiffs said that Musk then sold off the cryptocurrency at a high price and let it crash, causing investors to lose money.
They wanted $258 billion in damages, claiming that Musk’s actions constituted insider trading and market manipulation.
According to a report from Reuters, Judge Hellerstein’s ruling dismissed these claims, stating that Musk’s public comments about Dogecoin, which included promoting it as a potential future currency and making humorous references, were not fraudulent but rather aspirational.
The court found no proof that Musk or Tesla were involved in manipulating the market or trading Dogecoin unfairly.
The lawsuit was dismissed with prejudice, which means it cannot be brought back to court. The decision is a significant win for Musk and Tesla, who can now move on from this legal issue.
Musk’s legal team welcomed the decision, arguing that Musk’s public statements about Dogecoin were not meant to mislead anyone. They also pointed out that there was no evidence linking Musk or Tesla to the alleged trades.
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