Elon Musk, Tesla's CEO, is the focal point of a fresh legal dispute. Lawyers for the plaintiffs in a class-action lawsuit claim that Musk and Tesla tricked Dogecoin investors, causing them to lose billions.
They say this happened because Musk hyped up the cryptocurrency, causing its value to shoot up, then sold his and Tesla's holdings at a profit.
According to a Reuters report, Evan Spencer of Evan Spencer Law is now leading the legal charge against Musk and Tesla. He argues that Tesla's legal team, including in-house lawyer Allison Huebert and the law firm Quinn Emanuel Urquhart & Sullivan, shouldn't represent Musk or Tesla.
Musk's promotion of Dogecoin wasn't a one-time event. It was a series of public endorsements that had a significant impact on the value of the cryptocurrency. Musk often used his Twitter account, which has millions of followers, to discuss and promote Dogecoin. His tweets ranged from lighthearted memes to more direct endorsements, such as calling Dogecoin "the people's crypto." Each of Musk's tweets caused a surge in the value of Dogecoin, with some investors even likening his influence to a "Musk effect."
Spencer claims that Musk's personal Twitter activity, used to rally Dogecoin, might not be in Tesla's best interests. He hints that Tesla could even have a valid case against Musk, which would make it impossible for the legal team to represent both sides fairly.
The legal tussle took a turn for the worse after a New York Post article discussed a letter penned by Alex Spiro, a member of Musk and Tesla's defense team. Spiro warned that he'd seek sanctions against Spencer for lodging a supposedly baseless complaint.
Now, Spencer asserts this letter was wrongly leaked to the press, breaking ethical codes and possibly swaying the trial's outcome. The unfolding saga has everyone watching closely as Musk, Tesla, and their defense team prepare their next moves.
Arman Shirinyan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov