An Action Against Tesla CEO Is Dropped by the Court
Last August, the court rejected Tesla and Musk's argument. The complainants cannot show securities based entirely on Musk's social media posts, according to US District Judge Alvin Hellerstein, who dismissed the lawsuit.
Judge adds that Musk's claims about Dogecoin being the future money, buying Tesla with it, and being able to "fly to the moon" are all "aspirational and puffery" and not based on reality.
To summarize, Judge Hellerstein highlighted why it is unreasonable for an individual to rely on online postings as grounds for a securities fraud complaint. The court went on to say that it would be difficult to substantiate allegations of market manipulation or insider trading using just postings.
Musk and Tesla formally rescind their previous motion
A move to penalize the group's attorneys for initiating a "frivolous case" was made by Musk's team immediately upon receiving the fraud and market manipulation accusation. In an effort to extract money, Musk criticized the legal team for using shifting arguments.
In a Manhattan court last Thursday, the parties involved agreed to dismiss the appeal. The cases are formally dismissed after Judge Hellerstein signs off on these petitions.
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