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Investors accusing the CEO of Tesla Inc. of manipulating the cryptocurrency Dogecoin and losing them billions of dollars have filed a proposed class action lawsuit charging Elon Musk of insider trading. Investors claimed Musk utilised numerous Dogecoin wallets that he or Tesla owns to trade profitably at their cost in a Wednesday night petition in Manhattan federal court. The investors said Musk used hired internet influencers, Twitter tweets, his appearance on NBC’s “Saturday Night Live” in 2021, and other “publicity stunts” to do so.
Investors accusing the CEO of Tesla Inc. of manipulating the cryptocurrency Dogecoin and losing them billions of dollars have filed a proposed class action lawsuit charging Elon Musk of insider trading.
Investors claimed Musk utilised numerous Dogecoin wallets that he or Tesla owns to trade profitably at their cost in a Wednesday night petition in Manhattan federal court. The investors said Musk used hired internet influencers, Twitter tweets, his appearance on NBC’s “Saturday Night Live” in 2021, and other “publicity stunts” to do so.
Investors said that this included when Musk sold roughly $124 million worth of Dogecoin in April after switching the Twitter blue bird logo for the Shiba Inu dog logo, which caused Dogecoin’s price to increase by 30%. Last October, Musk purchased Twitter.
According to the lawsuit, Musk used a “deliberate course of carnival barking, market manipulation, and insider trading” to deceive investors and advertise himself and his businesses.
Musk’s attorney Alex Spiro on Thursday declined to comment. A request for comment from a Tesla lawyer was not immediately reacted to. Separately, the attorney for the investors didn’t comment right away.
According to Forbes magazine, Musk is the second-richest person in the world. Investors have accused Musk of purposefully inflating Dogecoin’s price by more than 36,000% over the course of two years before allowing it to fall.
In a proposed third amended complaint for a case that was filed in June of last year, they added their most recent allegations.
By referring to the second modified lawsuit as a “fanciful work of fiction,” Musk and Tesla requested the dismissal of the case in March. On May 26, they claimed a further amendment was unreasonable.
According to a Wednesday ruling from U.S. District Judge Alvin Hellerstein, the defendants would “likely” not suffer any harm as a result of his decision to “likely” admit the third amended complaint.
Johnson et al. v. Musk et al., U.S. District Court, Southern District of New York, Case No. 22-05037.
