U.S. Judge Sides with Elon Musk, Dismisses $258 Billion Dogecoin Pyramid Scheme Lawsuit

• Elon Musk successfully dismissed a $258 billion lawsuit, with the court ruling his Dogecoin tweets were merely aspirational.
• The class-action lawsuit alleged wire fraud, false advertising, and deceptive practices, seeking $172 billion in treble damages.
• The lawsuit’s permanent dismissal leaves no possibility for refiling, marking a legal victory for Musk and Tesla.

Tesla CEO Elon Musk has successfully dismissed a $258 billion lawsuit alleging his involvement in a cryptocurrency pyramid scheme centered around Dogecoin. The lawsuit, originally filed in June 2022, accused Musk of using his social media platform to unjustly profit from promoting the cryptocurrency.

Class-Action Claims Against Musk and Tesla Rejected

The lawsuit, led by plaintiff Keith Johnson, sought $172 billion in treble damages and $86 million in monetary damages. Johnson and the class claimed that Musk’s tweets about Dogecoin misled investors and amounted to wire fraud, gambling enterprise, false advertising, and deceptive practices. The lawsuit also argued that Tesla was vicariously liable for Musk’s actions.

Musk’s Legal Defense

In response, Musk’s legal team moved to have the case dismissed, arguing that the plaintiffs’ claims were based on inference, speculation, and suggestion. They asserted that Musk was not a Dogecoin insider and therefore had no duty of care to the public. Additionally, they emphasized that Musk’s social media posts, including those referring to him as the Dogefather,” did not constitute material nonpublic information.

Court’s Ruling and Permanent Dismissal

U.S. District Judge Alvin Hellerstein ruled in favor of Musk and Tesla, stating that Musk’s tweets were merely “aspirational” and not actionable. The judge dismissed the insider trading and fraud allegations, finding the plaintiffs’ arguments insufficient to sustain their claims. Consequently, the lawsuit has been permanently dismissed, with no option for it to be refiled.