Elon Musk Wins Dogecoin Market Manipulation Lawsuit

Elon Musk and Tesla successfully defended against a class action lawsuit in 2022, which accused Musk of influencing Dogecoin's market to the detriment of investors.

On Thursday, U.S. District Judge Alvin Hellerstein dismissed the case with prejudice, meaning it cannot be refiled.

In June 2022, a group of investors brought legal action against Musk and his company, alleging that Musk’s conduct related to Dogecoin, including various tweets, misled them.

They cited Musk’s statements, such as his claim to become Dogecoin’s CEO and his mention of sending Dogecoin to the moon via SpaceX, as misleading.

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The investors filed the lawsuit in the Southern District of New York against Musk and his companies, Tesla and SpaceX.

Judge Hellerstein ruled that Musk’s statements were merely promotional and not factual, noting that no rational investor would take them seriously.

He also mentioned that the plaintiffs’ claims of market manipulation, insider trading, and a supposed “pump and dump” scheme by Musk and Tesla lacked clarity and did not form a solid legal basis.

Alexander Stefanov