Elon Musk’s lawyers aim to dismiss a Dogecoin insider trading case, citing harmless tweets and lack of merit.
Key Points
- Musk’s lawyers want Dogecoin insider trading case dismissed, calling it baseless and burdening the legal system.
- They argue Musk’s tweets about DOGE are harmless and legal, not misleading.
- Plaintiffs changed complaint, alleging market manipulation; defense disputes lack of evidence connecting Musk to DOGE wallets.
- Defense says Musk’s tweets are exaggerated, lawsuit lacks merit; both sides agree DOGE is speculative.
Attorneys representing Tesla CEO Elon Musk are urging a judge to dismiss a multi-billion dollar case accusing Musk of insider trading with Dogecoin (DOGE) involving his online followers.
The lawyers argue that the allegations should be dismissed with prejudice, preventing plaintiffs from continuously burdening the judicial system with additional accusations based on Musk’s Twitter activity.
Elon Musk’s legal battle with a group of disgruntled Dogecoin (DOGE) investors has taken a new turn as Musk’s lawyers have requested the dismissal of the case due to its prolonged duration.
— LINKFOCUS (@LinkFocusMedia) August 10, 2023
Elon Musk’s ‘Silly Tweets’
In a letter filed in a New York federal court, Musk’s lawyer, Alex Shapiro, criticized the repeated pleas of the disgruntled investors as baseless and frivolous. The lawyer stated that the lawsuit is solely based on Musk’s innocuous and often silly tweets about DOGE.
The letter emphasized that there is nothing unlawful about expressing support or sharing funny pictures about a cryptocurrency with a market capitalization of over $11 billion.
The plaintiffs’ initial complaint, filed in June 2022, sought $258 billion from Musk to compensate for investor losses resulting from his promotion of DOGE in early 2021.
The lawsuit has been amended three times, with lead attorney Evan Spencer adding insider trading and market manipulation charges to the claims by June 2023.
The latest filing identified specific wallets allegedly used by Musk to trade DOGE and influence its price through his tweets. However, Musk’s lawyers argued that the plaintiffs lack evidence that any of the identified wallets belonged to the CEO.
The defense stated, “Plaintiffs fail to state a claim that Mr. Musk’s cheerleading for Dogecoin – quintessential inactionable puffery – was materially false or misleading, or that Defendants acted with the requisite intent.”
They further clarified that Musk’s alleged falsehoods, such as “Dogecoin to the moooonn” and “Dogecoin will live forever,” should be viewed as puffery.
Lawsuit ‘Fails On Its Face’
Both parties agreed that Dogecoin is a highly speculative security investment.
However, the defense argued that this fact is public, widely known, and obvious, citing Dogecoin founder Billy Markus’s admission.
The defense also highlighted that the insider trading accusation against Musk “fails on its face” since Musk’s private intentions about tweeting about Dogecoin do not constitute material non-public information.
Musk’s lawyers concluded, “Plaintiffs have had the opportunity to file four complaints in this case, and their allegations continue to fall well short of pleading any cause of action, let alone a sufficiently particularized complaint.”
