A U.S. District Court judge has dismissed a significant lawsuit accusing Elon Musk and Tesla of manipulating the price of Dogecoin. U.S. District Judge Alvin Hellerstein issued the ruling in August 2024, concluding that Musk's public statements about the cryptocurrency were "aspirational and puffery" rather than factual claims that could prove market manipulation.
The lawsuit, initially filed in June 2022, sought $258 billion in damages. Plaintiffs alleged that Musk and Tesla artificially inflated Dogecoin's price through public statements and social media, leading to billions in alleged profits for the defendants and substantial losses for investors. Judge Hellerstein's decision emphasized that Musk's comments were not factual assertions upon which a reasonable investor would rely, characterizing them as exaggerated claims not intended to be taken literally.
This ruling has broader implications for the cryptocurrency space, where the influence of prominent figures on market sentiment is a constant factor. While Musk's past statements have demonstrably impacted Dogecoin's price, this legal outcome suggests a higher threshold for proving market manipulation based on such pronouncements. The dismissal with prejudice means the case cannot be refiled, providing a definitive conclusion to this legal challenge.
As of August 17, 2025, Dogecoin was trading around $0.2336, showing a slight increase in the past day. The legal precedent set by this dismissal may influence how future cases involving influencer marketing and cryptocurrency promotion are handled, particularly concerning the distinction between genuine market influence and actionable manipulation.