A Manhattan judge has permanently dismissed a lawsuit accusing Elon Musk and Tesla of manipulating the price of Dogecoin (DOGE) through social media posts and public appearances.
U.S. District Judge Alvin Hellerstein delivered the ruling on Thursday night. The lawsuit, filed by investors in 2022, alleged that Musk used his influence on Twitter (now X) and a 2021 appearance on NBC’s “Saturday Night Live” to sway the price of Dogecoin, allowing him to profit at the expense of other investors.
The lawsuit highlighted several of Musk’s statements, including claims that he had “become Dogecoin’s CEO,” would send a “literal Dogecoin in SpaceX to the moon,” and that “Dogecoin might become the global financial system’s standard.”
Judge Hellerstein dismissed these allegations, noting that Musk’s statements were “aspirational and puffery,” not factual claims that could be proven false. He added that “no reasonable investor could rely on them.”
In his decision, Hellerstein granted the motion to dismiss the Fourth Amended Complaint with prejudice, instructing the Clerk to enter judgment in favor of Musk and Tesla, dismiss the complaint permanently, terminate all open motions, and close the case.
What Could be the impact of this?
The dismissal of the lawsuit against Elon Musk and Tesla regarding the alleged manipulation of Dogecoin’s price could have several implications for both the cryptocurrency market and legal accountability in similar cases.
Firstly, the court’s decision to reject the claims emphasizes that statements made by high-profile figures, even if they are bold or speculative, may not necessarily constitute actionable market manipulation.
This ruling could set a precedent, making it more challenging for investors to hold influential figures accountable for statements they make about volatile assets like cryptocurrencies. It reinforces the notion that such statements are often viewed as speculative rather than concrete, which may deter similar lawsuits in the future.
Secondly, the dismissal could impact investor behavior and market sentiment. Investors might perceive this outcome as a signal that legal recourse for market manipulation claims is limited, potentially leading to increased skepticism about relying on public figures’ endorsements or comments for investment decisions.
This could lead to greater emphasis on thorough due diligence and caution in investment strategies, especially in highly speculative markets like cryptocurrencies.
Finally, the case’s closure might also affect the broader legal landscape by clarifying the boundaries of what constitutes market manipulation. It could prompt more rigorous definitions and standards in future cases, potentially leading to more robust regulations or enforcement actions if similar issues arise.
For Musk and Tesla, the dismissal removes a significant legal obstacle and may allow them to focus on their business ventures without the distraction of ongoing litigation related to Dogecoin.
Source: https://cryptoticker.io/en/elon-musk-doge-lawsuit