Manhattan Judge Dismisses Lawsuit Alleging Elon Musk Manipulated Dogecoin Price

In a significant legal development, a Manhattan judge has officially dismissed a lawsuit claiming that Elon Musk and his company, Tesla, manipulated the price of the popular cryptocurrency Dogecoin (DOGE). The lawsuit, which centered around Musk's social media activity on X (formerly Twitter) and public remarks, was permanently thrown out by U.S. District Judge Alvin Hellerstein on Thursday evening.

The lawsuit, originally filed in 2022, accused Musk of using his influential online presence and a memorable appearance on NBC's "Saturday Night Live" in 2021 to sway the price of Dogecoin. Investors alleged that Musk’s actions were intended to artificially inflate the value of the token, allowing him to profit at their expense.

Key statements by Musk cited in the lawsuit included his self-proclaimed title as "Dogecoin's CEO," his promise to place a "literal Dogecoin in SpaceX and fly it to the moon," and his suggestion that "Dogecoin might become the standard for the global financial system." However, Judge Hellerstein dismissed these claims, characterizing Musk's statements as "aspirational and puffery," rather than factual assertions that could be relied upon by a reasonable investor.

In his ruling, Hellerstein stated, "Defendants' motion to dismiss the Fourth Amended Complaint is granted with prejudice," effectively closing the case. The judgment also ordered that all related motions be terminated and the case be marked as closed, solidifying the decision in favor of Musk and Tesla.