Elon Musk and his company Tesla have managed to successfully wade off a lawsuit against them alleging that they pumped the price of Dogecoin into a $258 billion pyramid scheme.
For context, in June 2022, investors sued Musk and his firm. They alleged that their activities w.r.t. Dogecoin had defrauded them.
Investors who lost funds by investing in DOGE when Musk posted phrases like “One word: Doge” and “Baby Doge, doo, doo, doo, doo, doo” on his X account, underlined that his tweets equated to promotion.
They also brought to light that the Tesla executive underlined his intentions to "become Dogecoin's CEO," and also put a "literal Dogecoin in SpaceX and fly it to the moon." Additionally, they pointed out that Musk also said that "Dogecoin might become the standard for the global financial system."
According to the suit, they also contended that the executive bumped up the price by subsequently announcing that Tesla would accept DOGE as a payment option.
Judge Alvin Hellerstein ruled in Musk’s favor. He asserted that the statements made were “aspirational and puffery” and not “factual and susceptible to being falsified” and “no reasonable investor could rely upon them.”
Furthermore, the judge emphasized that it’s “not possible to understand” the allegations connected to the pump and dump scheme.
Wrapping up the case once and for all, the judge wrote,
“Defendants' motion to dismiss the Fourth Amended Complaint is granted with prejudice. The Clerk shall enter judgment in Defendants' favor and tax costs, dismiss the Fourth Amended Complaint with prejudice, terminate all open motions, and mark the case closed.”
DOGE did not outrightly react to the court’s ruling. That being said, it was trading around $0.1023 at press time, up by a negligible 1% over the past day.
