Elon Musk asks the court to dismiss the complaint of plaintiffs in the $258 billion Dogecoin lawsuit. The lawsuit refers to Musk's actions, which are not illegal. In addition, plaintiffs fail to explain how Musk intended to deceive anyone or what risks he was hiding.
Lawyers for Elon Musk on Friday asked a US court to dismiss a $258 billion lawsuit that accuses him of running a pyramid scheme to support the Dogecoin cryptocurrency. In a filing in federal court in Manhattan, Dogecoin investors' lawsuit is called a “fanciful work of fiction” over Musk's “innocuous and often silly tweets” about Dogecoin, according to Reuters.
Musk's lawyers said the investors never explained how Musk intended to deceive anyone or what risks he was hiding. They explained that his words like “Dogecoin Rulz” and “no highs, no lows, only Doge” were too vague to support a fraud claim. In fact, there is nothing illegal in posting words of support for a legitimate cryptocurrency, they explained.
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion,” Musk's lawyers said. “This court should put a stop to plaintiffs' fantasy and dismiss the complaint.”
Dogecoin investors accused Musk of deliberately pushing the price of Dogecoin over 36,000% over two years and then allowing it to crash. The $258 billion damages figure is triple the estimated decline in Dogecoin's market value in the 13 months before the lawsuit was filed.
The non-profit organization Dogecoin Foundation is also the defendant in the case and is seeking dismissal of the lawsuit.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.