Elon Musk requested a U.S. judge to dismiss a $258 billion racketeering lawsuit alleging him of creating a pyramid scheme to fund Cryptocurrencies.
Lawyers for Musk and Tesla Inc (TSLA.O) labeled Dogecoin investors’ case a “fanciful work of fiction” over Musk’s “innocuous and frequently ridiculous tweets” regarding Dogecoin in an evening Manhattan federal court filing.
The attorneys decided Musk’s “Dogecoin Rulz” and “no highs, no lows, only Doge” remarks were too imprecise to establish a fraud lawsuit.
“There is nothing criminal about tweeting words of encouragement for, or humorous photographs about, a genuine cryptocurrency that continues to retain a market valuation of roughly $10 billion,” Musk’s attorneys stated. “This court should end plaintiffs’ delusion and dismiss the complaint.”
In a footnote, the attorneys denied the investors’ security claim for Dogecoin.
Evan Spencer, the investors’ lawyer, wrote in an email, “We are more certain than ever that our lawsuit will be successful.”
Forbes’ second-richest person, Musk, was accused of artificially inflating Dogecoin’s price by 36,000% over two years and then letting it sink.
Even though Musk knew Dogecoin had no value, they asserted this made billions of dollars at other investors’ cost.
Musk’s “Weekend Update” appearance on NBC’s “Saturday Night Live” as a financial expert dubbed Dogecoin “a scam,” according to investors.
The $258 billion damages projection is treble Dogecoin’s anticipated market value decrease in the 13 months preceding the lawsuit.
Dogecoin Foundation, a nonprofit defendant, wants the case dismissed.
Musk’s tweets, which he owns, have led to many lawsuits.
A San Francisco jury acquitted him on Feb. 3 for tweeting in August 2018 that he had secured finance to take Tesla private.
Johnson et al. v. Musk, U.S. District Court, Southern District of New York, 22-05037.
