Elon Musk Attempts to Have Dogecoin (DOGE) Pyramid Scheme Allegations Dismissed.
Elon Musk is seeking to dismiss a $258 billion class-action lawsuit that accuses him, Tesla, and the Dogecoin Foundation of promoting the cryptocurrency on social media in a fraudulent manner. The motion argues 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. Musk’s lawyers further argue that the plaintiffs have failed to demonstrate any material misrepresentation or omission, and that the statements in question are vague, subjective, and amount to puffery. The motion also asserts 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.