Elon Musk and Tesla successfully got a federal lawsuit dismissed that accused them of insider trading and price manipulation of the cryptocurrency Dogecoin (DOGE).
Investors claimed that Musk used Twitter, his appearance on NBC’s “Saturday Night Live” in 2021, and other promotional actions to profit from trading Dogecoin. They argued that these actions significantly influenced the cryptocurrency’s price, allowing Musk to gain financially.
However, the judge emphasized that no reasonable investor could rely solely on tweets and media appearances to make decisions about buying or selling securities. The court also noted that the cryptocurrency market is highly volatile, and any public statement can lead to significant price fluctuations, which cannot be used as a basis for accusations of fraud.
As a result, the judge ruled that the allegations of insider trading and price manipulation by Musk and Tesla do not have sufficient evidence to proceed with the lawsuit.
