Tesla and Elon Musk win dismissal of Dogecoin lawsuit

2024.08.30 3 min read

Elon Musk and Tesla’s legal troubles with the cryptocurrency Dogecoin seem to have reached an end. In a decision on Thursday, U.S. District Judge Alvin Hellerstein dismissed a federal lawsuit alleging that Tesla and Musk defrauded Dogecoin investors by hyping the cryptocurrency and conducting insider trading.

As noted in previous reports, the plaintiffs of the Dogecoin lawsuit alleged that Musk and his companies “profited tens of billions of dollars” at regular Dogecoin investors’ expense. The plaintiffs honed in on some of Musk’s comments in the suit, such as when the CEO dubbed the cryptocurrency a “hustle” in his appearance on Saturday Night Live in 2021.

The plaintiffs also alleged that Musk intentionally drove up Dogecoin’s value by over 36,000% through comments and posts on social media before allegedly letting it crash. Overall, the plaintiffs originally looked to secure $258 billion in damages, though Musk’s legal team has argued that the case had no basis.

Hellerstein noted that Musk’s comments, some of which hyped up Dogecoin as a potential future currency of the Earth, were “aspirational and puffery, not factual and susceptible to being falsified.” The judge also noted that no reasonable investor could rely on Muss’ tweets to pursue a securities fraud claim, as noted in a Reuters report.

Ultimately, Hellerstein dismissed the plaintiff’s Dogecoin lawsuit against Musk and Tesla with prejudice, which means that the case could not be brought again. This should come as a relief for Musk and Tesla, as the plaintiffs had amended their legal complaint four times in the past two years.

Lawyers of the plaintiffs have not issued a comment about the matter. Alex Spiro, one of Elon Musk’s lawyers, simply noted that, “It’s a very good day for Dogecoin.”

While Elon Musk has been very outspoken about his support for Dogecoin, so much so that the cryptocurrency has been used as an option to purchase Tesla merchandise and vehicles in the past, he has warned the public about investing in the cryptocurrency. Musk highlighted such sentiments in a 2021 impromptu interview.

“I think people should not invest their life savings in cryptocurrency. To be clear, I think that’s unwise. But if you want to sort of speculate and maybe have some fun, there is a good chance that crypto is the future currency of Earth… But it should be considered speculation at this point, so don’t go too far on the crypto speculation part,” Musk said.

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