Musk and Dogecoin Investors Face Class Action Lawsuit | Lawyer Moves to Dismiss Alleging Abuse of Process, Details Musk's Dog-Related Actions

Twitter CEO Elon Musk is still embroiled in a lawsuit with Dogecoin investors, and his lawyers have filed a motion today requesting the dismissal of the lawsuit, claiming it is an abuse of power and delaying the trial process. However, considering Musk's numerous endorsements of Dogecoin, he may indeed face legal consequences.

For more information on the class-action lawsuit involving Musk's insider trading and price manipulation of Dogecoin, refer to this article.

Elon Musk's Lawyer: Unable to Prove the Connection, No Misleading Information

According to documents from the New York Federal Court, Elon Musk's lawyer, Alex Shapiro, has once again requested dismissal of the case today, citing the plaintiff's abuse of rights and aggressive litigation strategy, causing repeated delays in the case.

It is reported that the plaintiff's lawyer, Evan Spencer, has amended the complaint three times in June, adding more allegations. Shapiro stated in response to this on record:

The plaintiff's allegations will not be able to support their position in the review, as the wallet involved in the Dogecoin sale has no actual connection to him or Tesla. Furthermore, the complaint fails to prove whether Musk's statements regarding Dogecoin were false or misleading.

Shapiro claimed that Musk's public expression of interest in Dogecoin on social media is not illegal and mocked Spencer's amended complaint as far-fetched and difficult to understand.

Previously, Shapiro had claimed that Spencer was attempting to interfere with the case's progress through the media, while Spencer accused Shapiro of damaging the reputation of investors.

Evan Spencer is required by law to submit a response to this motion by September.

Musk's Dog Play

Despite the legal entanglements, Elon Musk, whose actions have always been unpredictable, seems unfazed by it. He still occasionally tweets about Dogecoin on Twitter. Here are some of the more significant events:

• In April 2019, Musk first publicly expressed his views on cryptocurrency: "Dogecoin might be my favorite cryptocurrency." Doge surged 25% in two days.
• In February 2021, Musk said, "Dogecoin is the people's currency." Doge rose 150% in four days.
• In April 2021, Musk stated, "Doge barking at the moon." Doge surged 500% in four days.
• In May 2021, Musk appeared on "Saturday Night Live" with his mother, who said, "I hope my Mother's Day gift isn't Dogecoin." Doge fell 35% in two days.
• In April 2023, Musk changed the Twitter logo to Dogecoin, and Doge surged 38% in two days.

Is it Illegal for Public Figures to Influence Cryptocurrency Prices?

Dogecoin was created in 2013 as a meme coin and had a price close to zero before 2020. It skyrocketed by over 15,000% in the first half of 2021, indirectly influenced by Musk's repeated promotion. However, it has now dropped 90% from its all-time high.

Examining the correlation between Musk's tweets and Dogecoin prices, the Blockchain Research Lab has found that a tweet from Musk about Dogecoin on average leads to an 8% price increase within 5 minutes.

Law professor Eric Goldman explained that the mutual influence of new financial and online comments is still in a legal gray area and lacks specific regulations:

While Musk may not face charges from government or regulatory agencies for this, his statements about highly volatile and under-regulated markets could still be seen as a potential liability for investor losses and could lead to accusations against him.