Elon Musk, a businessman and the founder of Tesla has been exonerated in the class action lawsuit charged against him by some group of investors in 2022. The lawsuit claimed that Musk’s deceptive actions related to Dogecoin influenced the memecoin’s market value. They claimed that his strings of promotional tweets about the crypto asset led them to make substantial investments.
The investments allegedly caused them major financial setbacks, hence the whopping $258 billion in damages demanded from him.
Investors Banked On Elon Musk’s Remarks About Dogecoin
The disgruntled investors filed a lawsuit against Musk at the Southern District Court in New York. They asserted that Musk orchestrated a Dogecoin Pyramid Scheme leveraging his status as the wealthiest individual globally. During the court hearing, Judge Hellerstein criticized the plaintiffs’ view of Musk’s social media posts in his ruling.
The court concluded that many of Musk’s tweets, such as claims of being Dogecoin’s CEO and sending the memecoin to the moon via SpaceX, were misinterpreted. The presiding judge stated that Musk’s statements were not meant to be taken as facts but as aspirations and puffery. He warned against relying on such comments for investment decisions.
In 2023, Musk’s legal team filed a motion requesting the judge to dismiss the class action lawsuit, labeling it as pure fiction. They argued that the enormous damages sought were baseless and that the allegations lacked merit. Judge Hellerstein ruled in favour of the defendant, and the lawsuit was dismissed permanently on August 29.
Dogecoin Reaction to the Lawsuit Update
Surprisingly, Dogecoin’s market activity remained subdued after the lawsuit was dismissed. After the announcement, the memecoin’s value only rose by a slight 0.1% in a day. At the time of writing, DOGE is trading at $0.101020, down by 0.46% in the last 24 hours as per CoinMarketCap data.
Speculations surrounding this bearish price is that investors is currently abandoning memecoins like DOGE and BONK ahead of the upcoming alt-season.
Elon Musk Maintains Tough Stance on Crypto Assets
Musk has been quite the enigma when it comes to crypto assets. The billionaire has recently been in the spotlight for several short and cryptic tweets related to digital currencies. The SpaceX and Tesla CEO said his tweets about digital assets should be considered as jokes.
In July, he removed the Bitcoin (BTC) and all crypto related hashtag emojis on X. This action sparked diverse reactions from the crypto community. This came after he clarified in 2023 that his Artificial Intelligence company, xAI or any of his businesses will never launch a crypto token.
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