Elon Musk has filed a motion to dismiss a $258 billion class-action lawsuit accusing him of running a Dogecoin pyramid scheme.
The lawsuit alleges that Musk, Tesla, and the Dogecoin Foundation committed fraud by promoting the meme cryptocurrency on social media.
However, Musk's lawyers argue that the claims are "a fanciful work of fiction" and that tweeting in support of a legitimate cryptocurrency with a market cap of nearly $10 billion is not unlawful.
The motion contends that plaintiffs have failed to demonstrate any material misrepresentation or omission, and that the statements in question are vague, subjective, and amount to puffery. Furthermore, the plaintiffs have not identified a risk concealed by Musk and Tesla, since Dogecoin's speculative nature was well-known.It also highlights the plaintiffs' inability to demonstrate a strong inference of intent to commit fraud.
Musk's lawyers argue that the plaintiffs have not established loss causation, as they have not shown that a concealed risk was disclosed or materialized, causing Dogecoin's price to drop. Additionally, the motion claims that Musk's joke during a Saturday Night Live appearance, where he called Dogecoin a "hustle," did not reveal any new information about the cryptocurrency's risks.
The motion concludes by requesting the court to dismiss the complaint in its entirety and put an end to the "frivolous and baseless" class action.