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Elon Musk and Tesla (NASDAQ:TSLA) emerged victorious in the dismissal of a federal lawsuit alleging insider trading and market manipulation related to Dogecoin, as reported by Bloomberg.
U.S. District Judge Alvin Hellerstein in Manhattan delivered the decision on Thursday night.
The lawsuit contended that Musk and Tesla engaged in illicit practices by promoting Dogecoin, leading to an alleged inflation of its value to a staggering $258 billion ‘pyramid scheme’.
The investors claimed that Musk’s endorsement via Twitter, appearances like his 2021 stint on NBC’s “Saturday Night Live,” and Tesla’s acceptance of Dogecoin for transactions caused substantial market volatility and financial losses.
Judge Hellerstein highlighted that Musk’s tweets were more of “aspirational and puffery” rather than factual statements, making them unreliable for investors to act upon.
Contradicting the investors’ allegations, the court found no concrete evidence supporting claims of market manipulation or involvement in a “pump and dump” strategy with Dogecoin by Musk or Tesla, leading to the lawsuit’s dismissal.
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