Elon Musk, Tesla win USD258 billion class action lawsuit related to Dogecoin
(MENAFN) On Friday, billionaire Elon Musk and his electric vehicle company Tesla were cleared of allegations in a USD258 billion class action lawsuit related to Dogecoin. The lawsuit, initiated in 2022, accused Musk of using his social media platform, Twitter (now rebranded as X and owned by Musk), to manipulate the price of Dogecoin and thereby harm cryptocurrency investors. The plaintiffs alleged that Musk’s promotional comments, which included references to Dogecoin as his favorite currency, the people's crypto, and a potential global standard, were misleading and contributed to market volatility.
The investors cited specific claims made by Musk, such as Dogecoin potentially becoming the currency of the internet, the idea of sending a Dogecoin to the moon with SpaceX, and even the possibility of buying Tesla vehicles with Dogecoin. However, US District Judge Alvin K. Hellerstein of the Southern District of New York ruled that these statements were merely aspirational and amounted to puffery rather than factual assertions. The judge found that the allegations of a "pump and dump" scheme and market manipulation were not substantiated, and there was insufficient evidence to support claims of insider trading or breach of fiduciary duty.
The lawsuit sought USD86 billion in damages, with an additional request for triple damages totaling USD172 billion. Despite the legal challenge, Dogecoin, which began as a joke cryptocurrency, surged to become one of the top ten crypto assets by early 2021, largely influenced by Musk’s high-profile endorsements. As of Friday, Dogecoin ranked 8th among cryptocurrencies, boasting a market capitalization of USD14.7 billion. Unlike Bitcoin, Dogecoin does not have a cap on its total supply, which sets it apart from other major digital currencies.
Elon Musk, who had previously been the world’s richest person, now holds a net worth of approximately USD244 billion, according to Forbes' Real-Time Billionaires List. Despite losing the top spot in recent years, Musk continues to be a prominent figure in the tech and financial worlds, with significant influence over markets and industries.
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