Tesla CEO Elon Musk has managed to dismiss the $258 billion Dogecoin lawsuit.
The class-action lawsuit, which was filed back in June 2022, alleged that the centibillionaire engaged in a cryptocurrency pyramid scheme.
The complaint claimed that Musk unjustly enriched himself at the expense of plaintiff Keith Johnson and the class by promoting the cryptocurrency on his social media profile.
The business mogul was accused of wire fraud, gambling enterprise, false advertising, and deceptive practices.
Gamza KhanzadaevThe class was seeking $172 billion in treble damages and $86 million in monetary damages.
Notably, the plaintiffs also argued that Tesla was vicariously liable for torts allegedly committed by the centibillionaire.
In April, Musk's lawyers asked the court to dismiss the lawsuit without leave to amend. They claimed that the plaintiffs' allegations were based on "nothing more than inference, speculation, and innuendo." Furthermore, they stated that Musk was not a Dogecoin insider who owed any duty of care to the public. Social media posts referring to him as "Dogefather" were "neither material nonpublic information nor facts" alleging that the cenbillionaire was an insider.
Tomiwabold OlajideAs for Tesla, Musk's lawyers argued that the plaintiffs' allegations were insufficient to sustain a claim against Tesla.
U.S. District Judge Alvin Hellerstein ended up siding with Musk and Tesla, claiming that his controversial tweets were merely "aspirational." The judge also poured cold water on the plaintiffs' insider trading and fraud claims.
The lawsuit cannot be brought back to court since it has been permanently dismissed.
Godfrey Benjamin
Tomiwabold Olajide