$250+ Billion Dogecoin Lawsuit Against Elon Musk Dismissed

A U.S. District Judge dismissed a class action lawsuit that was seeking $258B in damages against Elon Musk and Tesla. The suit alleged that Musk's comments had manipulated the Dogecoin market.

What’s the scoop?

• Allegations of Manipulation: Investors claimed that Musk's public statements, including tweets about DOGE and aspirations like becoming the token’s CEO and putting a Dogecoin on the moon, were misleading.
• Judge’s Ruling: The judge ruled Musk's statements as "aspirational and puffery," unreliable for investors. Allegations of market manipulation were found groundless, with no evidence of a "pump and dump" scheme or insider trading.

Bankless Take:

The dismissal of the lawsuit looks to spread the message of “follow influencers at your own peril.” While Musk’s influence on the market is undeniable, this ruling suggests that broad, non-specific comments, even from a high-profile figure, are difficult to pin down as actionable market manipulation, a sentiment echoed in the prompt dismissal of a lawsuit against Roaring Kitty in late June by a GME holder.