© Reuters. Elon Musk is seeking to have a lawsuit against Dogecoin worth $258 billion in court filing dismissed
- Elon Musk has asked to dismiss a $258 billion lawsuit over subsidies.
- Musk’s lawyers have argued that the allegations against him are unsubstantiated and that the tweets are innocent.
- Investors failed to provide evidence of deception, and Musk’s statements were very vague.
On Friday, sources reported that Elon Musk asked a US judge to dismiss a $258 billion lawsuit alleging he ran a pyramid scheme to support the Dogecoin cryptocurrency.
Attorneys representing Elon Musk and his electric car company Tesla (NASDAQ: Inc) referred to the lawsuit filed by Dogecoin investors as a “work of fictional fiction” in a filing filed in Manhattan federal court on Friday night. They argued that the allegations against Musk were unfounded, and that his tweets about Dogecoin were innocent and at times ridiculous.
Musk’s legal team also argued that the investors failed to provide any evidence of how the Twitter CEO planned to defraud anyone or the risks he concealed. They also asserted that Musk’s statements, including “Dogecoin Rulz” and “No highs, no lows, just Doge”, were too vague to support the fraud allegations.
The news: Elon Musk asked a US judge on Friday to dismiss a $258 billion extortion lawsuit accusing him of running a pyramid scheme to support the Dogecoin cryptocurrency. …
— Sawyer Merritt (@SawyerMerritt) April 1, 2023
The lawyers have continued to assert that expressing support for a legitimate cryptocurrency with a market cap of nearly $10 billion through humorous or positive tweets is not illegal. They further added,
This court must put an end to the plaintiffs’ illusions and dismiss the complaint.
Additionally, in a footnote, Musk’s legal representatives dismissed investors’ assertion that Dogecoin should be classified as a security. Meanwhile, in response to the filing, Evan Spencer, the investors’ attorney, stated via email that they were more confident in the success of their case.
Investors claimed that Musk, who is currently the second richest individual in the world, deliberately inflated the value of Dogecoin by more than 36,000% in two years before letting it plummet.
Furthermore, investors accused Musk of reaping billions of dollars in profits at the expense of other Dogecoin investors, even though he knew the coin was worthless. They pointed to Musk’s “Saturday Night Live” appearance where he described Dogecoin as a “rant”. The lawsuit seeks $258 billion in damages, three times the estimated drop in Dogecoin’s market capitalization in the 13 months before the lawsuit was filed. However, the Dogecoin Foundation, a non-profit organization, is also named as a defendant and is trying to dismiss the case.
The aftermath of Elon Musk seeking to exclude $258 billion from Dogecoin legal action in court filing appeared for the first time in Coin Edition.