Elon Musk Defeats $258 Billion Dogecoin (DOGE) Lawsuit

08/30/2024 12:44
Elon Musk Defeats $258 Billion Dogecoin (DOGE) Lawsuit

Elon Musk's legal team has successfully persuaded the court do dismiss the Dogecoin lawsuit

Elon Musk's legal team has successfully persuaded the court do dismiss the Dogecoin lawsuit

Elon Musk Defeats $258 Billion Dogecoin (DOGE) Lawsuit

Cover image via U.Today

Tesla CEO Elon Musk has managed to dismiss the $258 billion Dogecoin lawsuit.

The class-action lawsuit, which was filed back in June 2022, alleged that the centibillionaire engaged in a cryptocurrency pyramid scheme.

The complaint claimed that Musk unjustly enriched himself at the expense of plaintiff Keith Johnson and the class by promoting the cryptocurrency on his social media profile. 

The business mogul was accused of wire fraud, gambling enterprise, false advertising, and deceptive practices. 

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The class was seeking $172 billion in treble damages and $86 million in monetary damages. 

Notably, the plaintiffs also argued that Tesla was vicariously liable for torts allegedly committed by the centibillionaire. 

In April, Musk's lawyers asked the court to dismiss the lawsuit without leave to amend. They claimed that the plaintiffs' allegations were based on "nothing more than inference, speculation, and innuendo." Furthermore, they stated that Musk was not a Dogecoin insider who owed any duty of care to the public. Social media posts referring to him as "Dogefather" were "neither material nonpublic information nor facts" alleging that the cenbillionaire was an insider. 

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As for Tesla, Musk's lawyers argued that the plaintiffs' allegations were insufficient to sustain a claim against Tesla. 

U.S. District Judge Alvin Hellerstein ended up siding with Musk and Tesla, claiming that his controversial tweets were merely "aspirational." The judge also poured cold water on the plaintiffs' insider trading and fraud claims. 

The lawsuit cannot be brought back to court since it has been permanently dismissed. 

About the author

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Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected].

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