Elon Musk and Tesla Inc. have successfully dismissed a lawsuit. (Photo: Reuters)
Elon Musk and Tesla Inc. have successfully dismissed a lawsuit alleging they inflated the price of the cryptocurrency Dogecoin into a $258 billion “pyramid scheme.”
Investors who lost tens of thousands of dollars investing in the cryptocurrency criticized Musk for promoting the token to his millions of Twitter followers with statements like “One word: Doge,” causing its price to surge. Musk further inflated the price by announcing that Tesla would accept Dogecoin as payment for merchandise, according to the 2022 complaint.
A federal judge in New York dismissed the claims on Thursday, finding that Musk’s statements were “aspirational” rather than “factual and capable of being falsified” and that “no reasonable investor could rely on them.”
Investors had also accused Musk and Tesla of engaging in a “pump and dump” scheme involving Dogecoin, but U.S. District Judge Alvin Hellerstein wrote that it was “not possible to understand” those allegations.
Lawyers for the plaintiffs did not immediately comment.
Dogecoin was the original memecoin, a type of cryptocurrency that originated from internet memes or jokes. Its logo is an image of a Shiba Inu dog.
First published: August 30, 2024 | 9:30 a.m. IS
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