In 2022, a group of investors accused Musk of manipulating the price of Dogecoin and filed a lawsuit. The judge recently permanently dismissed the case, saying that Musk's tweets were merely flattery and that no reasonable investor should rely on his remarks as an investment decision.
Previous article: Musk accused of manipulating the price of Dogecoin
In June 2022, a group of Dogecoin investors filed a lawsuit against Musk, his electric car company Tesla, and his aerospace manufacturing company SpaceX, accusing him of being the world's richest man and the leader of a "Pyramid scheme" method, pushing the price of Dogecoin up more than 36,000% in two years before allowing it to collapse.
The Dogecoin investor class action lawsuit, headed by Keith Johnson, began by accusing Musk and his company of committing fraud and violating racketeering and gambling laws, seeking $258 billion in damages:
Musk falsely claimed that Dogecoin was a legitimate investment, but it had no value at all and was not a currency, stock, or security.
(Dogecoin investors couldn’t bear the losses and sued Musk! Calling it a “pyramid scam” and seeking $258 billion in compensation)
In this regard, Musk, through his lawyer Alex Shapiro, twice requested the court to dismiss the lawsuit in April and August last year, saying that the plaintiff's lawyer Evan Spencer abused his rights and repeatedly delayed the lawsuit, making the case progress slowly:
The plaintiff's accusations and claims have never been able to support his position, because the wallet involved in selling Dogecoin has no actual connection with him or Tesla; and the complaint also fails to prove whether Musk's remarks about Dogecoin are valid. It is false or misleading.
Shapiro also described his multiple accusations against Musk and his demand for damages of up to $258 billion as "ridiculous and incomprehensible works of fiction."
(Musk and Dogecoin investors’ class action lawsuit｜Lawyer filed for rejection, claiming abuse of power and detailing Musk’s dog-playing actions)
Judge rules: No one will believe Musk's words
After the third year of litigation, Judge Alvin Hellerstein of the District Court for the Southern District of New York finally permanently dismissed the lawsuit yesterday, giving Musk an initial victory.
Hellerstein pointed out that Musk’s tweets about Dogecoin contained “idealistic and flattering” content that was clearly not true:
The defendants' interpretation of multiple tweets contained "substantial errors" and "no rational investor" would regard those tweets as trustworthy investment advice.
Musk has been playing with dogs for a long time
However, according to Lian News’ previous review of Musk’s various behaviors, Musk’s remarks will indeed cause the sharp rise and fall of Dogecoin, and he especially likes to use Dogecoin.
In September last year, Musk also revealed in his personal autobiography "Musk Biography" that he had actually been secretly funding the development of Dogecoin and even intended to create a payment system focused on DOGE tokens.
Earlier this year, he revealed his strong support for Dogecoin in a speech and is expected to include DOGE as one of the payment methods for purchasing Tesla electric vehicles.
(DOGE is rising sharply! Musk: Supports Dogecoin as the people’s cryptocurrency, Bitcoin is only supported by rich people)
This article Musk wins Dogecoin market manipulation case, judge: No one will treat his words as investment advice first appeared on Chain News ABMedia.
