Elon Musk, the CEO of Tesla, has successfully won the dismissal of a lawsuit that accused him and his company of manipulating the price of Dogecoin. The lawsuit, filed by a group of investors, claimed that Musk used his influence and social media presence to artificially inflate the price of Dogecoin, leading to significant financial losses when the cryptocurrency’s value subsequently crashed. The investors alleged that Musk’s actions amounted to insider trading and market manipulation, seeking damages totaling $258 billion.

On August 29, 2024, U.S. District Judge Alvin Hellerstein in Manhattan ruled in favor of Musk, stating that the lawsuit’s claims were based on “aspirational and puffery” statements rather than factual misrepresentations. The judge specifically referenced Musk’s tweets about sending Dogecoin to the moon and using it to buy Tesla vehicles as examples of non-factual, humorous remarks that no reasonable investor would rely on as sound financial advice​.

The decision marks a significant victory for Musk and Tesla, as the case has been dismissed with prejudice, meaning it cannot be refiled. Despite Musk’s frequent tweets and public statements about Dogecoin, the judge found no evidence to support the claims of insider trading or market manipulation​.

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