Elon Musk and Tesla have won the dismissal of a class-action lawsuit alleging that Musk’s comments manipulated the Dogecoin market. U.S. District Judge Alvin Hellerstein permanently dismissed the lawsuit, The Block reported.
Elon Musk and his electric car company Tesla won a class-action lawsuit against them in 2022 that claimed Musk's comments manipulated the Dogecoin market and harmed investors.
U.S. District Judge Alvin Hellerstein dismissed the lawsuit with prejudice on Thursday, meaning it has been permanently dismissed.
In June 2022, investors sued Musk and his company, claiming that they deceived investors with their activities around Dogecoin, including a series of tweets. Investors alleged that Musk's statements - including his statement that he agreed to become the CEO of Dogecoin and his suggestion to put Dogecoin into SpaceX and fly to the moon - were misleading.
A group of investors filed a lawsuit on their behalf in the Southern District of New York against Musk and his businesses Tesla and SpaceX.
"The statements were idealistic and exaggerated rather than factual and could easily have been falsified," Judge Hellerstein wrote in his ruling, adding that no reasonable investor could have relied on them.
The judge also said it was "impossible to understand" the allegations that formed the basis for the plaintiffs' conclusion of market manipulation, including Musk and Tesla's alleged "pump and dump" scheme and fiduciary duty violations that amounted to insider trading.
