A US District Court judge dismissed the $258 billion lawsuit that claimed Elon Musk, Tesla and their company had manipulated Dogecoin’s (DOGE).
This ruling was made on 30 August 2024 and signals a change in dynamics around the meme coin. It will impact its market trajectory as well as investor sentiment.
The Court holds that tweets are not fraudulent but aspirational
The judge Alvin Hellerstein of US District Court for Southern District of New York dismissed the class action lawsuit that was filed by Tesla and Elon Musk in June 2022.
Musk, his electric auto company and others were accused of running a “pump-and-dump” scheme with Dogecoin. The suit claimed that Musk’s Tweets had artificially inflated the price of Dogecoin by more than 36,000% prior to its crash.
Plaintiffs claimed Musk had used social media to manipulate Dogecoin’s price. They argued that Musk’s tweets were insider trading, and that they constituted a scam.
Judge Hellerstein found that Musk’s claims about Dogecoin are “unrealistic and inflated,” but not fraudulent or factual.
Judge found that Musk’s Twitter posts were not a reliable source of investment advice. Plaintiffs also failed to establish a link between Musk’s social media activities and the alleged manipulation in the market.
Musk and Tesla are relieved of a substantial legal burden by the court’s ruling.
Musk’s team filed a motion in April 2023, describing the suit as “a fanciful piece of fiction” and stating that Musk’s Tweets expressed optimism instead of actionable investment advice.
Dogecoin price (DOGE).
Dogecoin market performance could be affected by the dismissal of this lawsuit.
Dogecoin currently trades at $0.1018, which represents a rise of 1.1% over the last 24 hours. It is recovering from its recent drop of 18.9%. Current 24-hour range of prices is $0.09836 to $0.1026.
DOGE’s price has risen by 55.8% in the last year, despite the recent dip.
Musk’s influence over Dogecoin has diminished with time.
Even substantial tweets have no impact anymore on DOGE.
Musk may shift his focus away from Dogecoin now that the case is over, which could reduce its volatility, and foster a more stable market.
The post Dogecoin flashes a bullish signal after Elon Musk and Tesla win the manipulation case could be updated as new information becomes available.
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