Photo credit: Nathan Laine/ Bloomberg

U.S. District Judge Alvin Hellerstein has ordered the dismissal of the lawsuit against Tesla’s CEO Elon Musk, which accused him of insider trading and manipulating the price of Dogecoin (DOGE).

According to the court documents shared on Aug. 29, the defendants, Elon Musk and Tesla,  had asked the judge the dismiss the Fourth Amended Complaint (4AC). The 4AC filed against them accused of making false statements about DOGE and trading based on insider information.

According to the plaintiff, some of the false statements Musk made that manipulated the price of the meme coin include saying that Dogecoin might be his favorite coin. 

The plaintiff also accused Musk of making other misleading statements that Dogecoin is the people's crypto and the future currency of Earth, DOGE might become the standard for the global financial system and the currency of the internet.

After hearing the plaintiff’s accusation, the court ruled:

“These statements are aspirational and puffery, not factual and susceptible to being falsified.”

Regarding insider trading, the court noted that the plaintiffs' 'pump and dump' allegations do not explain how Musk and Tesla allegedly carried out this scheme. The plaintiffs also failed to properly explain how the defendants manipulated the market or violated state laws. 

Due to this lack of proper explanation, the court did not accept these allegations as valid.

The lawsuit against Elon Musk was filed by the plaintiff’s attorney, Evan Spencer, on June 16, 2022. Accusing Musk of conducting a Ponzi scheme and market manipulation, the plaintiff sought $258 billion in damages and an order declaring that the trading of Dogecoin constitutes gambling.

However, after the hearing, the court informed the plaintiff that the Fourth Amended Complaint will be dismissed with prejudice, all the open motions will be terminated, and the case will be closed.