Elon Musk was sued for $258 billion by a Dogecoin investor who accused him of running a pyramid scheme to support the cryptocurrency. The lawsuit, filed in federal court in Manhattan, claims that Musk, Tesla, and SpaceX promoted Dogecoin to drive up its price, only to let it tumble later. The plaintiff, Keith Johnson, is seeking $86 billion in damages and wants it tripled.
However, in August 2024, a New York federal judge dismissed the claims, finding that Musk's statements were "aspirational" rather than factual. The judge ruled that no reasonable investor could rely on Musk's statements, and the allegations of a "pump and dump" scheme were not understandable.
If you want to dive deeper into the details, you can find more information [here](https://finance.yahoo.com/news/elon-musk-sued-258-billion-190433249.html), [here](https://finance.yahoo.com/news/musk-tesla-beat-suit-over-001408817.html), and [here](https://www.bangkokpost.com/world/2856492/musk-tesla-beat-suit-over-promoting-dogecoin-pyramid-scheme).
In Johnson v. Musk et al., filed in the Southern District of New York federal court, Musk’s lawyers filed a formal motion to dismiss this past Friday regarding the racketeering lawsuit the tech mogul currently faces for his involvement in promoting the cryptocurrency Dogecoin. According to Reuters, Musk’s lawyers are arguing that the lawsuit is rubbish—more specifically, the plaintiffs never actually described how Musk’s statements in favor of Dogecoin defrauded anyone, or what risks Musk hid from investors.
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