- Investors are suing Elon Musk for alleged insider trading and manipulating DOGE.
- They claim substantial losses amounting to billions of dollars due to Musk’s actions.
- Musk’s lawyers contended that the accusations lacked substance.
In a recent development, Tesla CEO Elon Musk finds himself at the center of a new proposed class action lawsuit filed by investors, accusing him of insider trading and manipulating the popular meme-based crypto, Dogecoin (DOGE).
According to the UK’s Guardian Newspaper, the investors claim that Musk’s actions have resulted in substantial losses, costing them billions of dollars. In the new court filing on Wednesday, investors allege that Musk utilized various means, including Twitter posts, paid online influencers, and other publicity stunts to manipulate DOGE’s price for personal profit.
One specific incident mentioned in the filing is Musk’s sale of approximately $124 million worth of Dogecoin in April after the billionaire owner of Twitter replaced Twitter’s iconic blue bird logo with a meme-dog logo, causing a significant surge in DOGE’s value.
Describing Musk’s actions as a “deliberate course of carnival barking, market manipulation, and insider trading,” the investors accuse him of defrauding them while promoting himself and his companies.
Wednesday’s filing is the third amendment made to an existing lawsuit against Musk and his companies originally filed last June. Musk’s legal team previously sought a dismissal of the second amended complaint, referring to it as a “fantastical work of fiction,” as reported by Coin Edition in April 2023.
The lawyers contended that the accusations against Musk were baseless, asserting that his tweets about Dogecoin were harmless and occasionally nonsensical. They argued that Musk’s statements, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too vague to substantiate fraud claims.
Musk’s legal team maintained that the investors had not presented any proof of his intent to deceive or the concealment of risks.
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Source: https://coinedition.com/elon-musk-faces-allegations-of-insider-trading-in-the-dogecoin-lawsuit/