The attorneys argued that the lawsuit has no substance because it is based on Musk’s “harmless and oftentimes silly” statements over the years.
The attorneys argued that the lawsuit has no substance because it is based on Musk‘s “harmless and oftentimes silly” statements over the years. The plaintiffs have not explained how Musk intended to defraud anyone or what dangers he concealed in his tweets, according to Musk’s attorneys.
The attorneys stated: “There is nothing illegal about broadcasting words of support for or humorous images of a legitimate cryptocurrency with a market capitalization of nearly $10 billion.”
In the filing, they also rejected the plaintiffs’ claim that DOGE is a security. The judge has not yet rendered a ruling on the matter.
On June 16, 2022, plaintiff Keith Johnson filed a class action racketeering lawsuit against Elon Musk and his companies.
The lawsuit accused Musk of promoting a pyramid scheme and manipulating the price of DOGE before its collapse, despite his knowledge that the cryptocurrency lacked intrinsic value. The investors assert that Musk and the Dogecoin Foundation made billions of dollars from this scheme.
According to the lawsuit, Musk “is and has been fully aware” that his statements would affect the price, market capitalization, and trading volume of Dogecoin. It also states that every such endorsement has prompted millions of individuals to invest in the meme coin.
Additionally, the lawsuit asserts that Dogecoin is both a security and a pyramid enterprise. However, it utilizes quotes from notable figures such as Charlie Munger and regulators such as the Reserve Bank of India to support its claims.
The plaintiffs are seeking approximately $258 billion in compensation. The matter is still pending in New York’s Southern District Court.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.