On Thursday, U.S. District Judge Alvin Hellerstein in Manhattan ruled in Musk’s favour and ended claims against him and his company.
Investors’ Claims Rejected
The lawsuit, revised four times over two years, alleged that Musk used his influence through X and his “Saturday Night Live” appearance to manipulate Dogecoin’s price. Investors argued that Musk inflated Dogecoin’s value by 36,000% over two years before selling off his holdings, leading to a significant price crash and major financial losses. They also accused him of insider trading, suggesting he timed his trades to match his public statements.
One example cited was Musk’s April 2023 change of Twitter’s logo to the Dogecoin symbol, which led to a 30% spike in the cryptocurrency’s price. Investors claimed Musk sold his holdings shortly after this event.
Judge Hellerstein’s Ruling
Judge Hellerstein found the investors’ claims unconvincing, stating that Musk’s tweets about Dogecoin were aspirational and not literal, making it unreasonable for investors to base fraud claims on them. He also dismissed the insider trading accusations as unclear and dismissed the case with prejudice, meaning it cannot be brought back to court.
Elon Musk’s lawyer, Alex Spiro, called the ruling a positive outcome for Dogecoin. Musk’s legal team maintained that his tweets were harmless and there was no illegal activity associated with Dogecoin trading.
