The plaintiffs brought up Elon Musk's appearance on Saturday Night Live in 2021, during which he played "a fictional financial expert" and referred to Dogecoin as "a hustle," which caused a sharp price drop minutes thereafter.
As per reports, Elon Musk and his attorneys asked a US judge to throw out a $258 billion lawsuit brought by investors who claimed he ran a pyramid scheme to market the cryptocurrency Dogecoin.
Elon Musk's attorneys said in Manhattan's federal court on March 31 that the lawsuit against Musk, which was brought by Dogecoin investors in June 2022, was a "fanciful work of fiction," in a report by Reuters on April 1. Following Musk's legal team, his social media posts endorsing Dogecoin, including those with the hashtags "Dogecoin Rulz" and "no highs, no lows, only Doge," were "too ambiguous" to establish a fraud allegation.
There is nothing illegal about tweeting encouragement for or amusing images of a legitimate cryptocurrency with a market valuation of close to $10 billion.-The Lawyer stated.
To persuade the judge to "throw out" the multibillion-dollar lawsuit, Musk's attorneys described his Dogecoin statements as "innocent and frequently funny tweets."
In the initial lawsuit from last year, Musk was charged with inflating the price of Dogecoin by "more than 36,000% over two years and then letting it crash," and with "using his pedestal as the World's Richest Man to manage and influence the Dogecoin Pyramid Scheme."
The price of DOGE crashed more than 25% minutes after the appearance on television, dropping as low as $.50 from $.66 highs at the beginning of the show. After his appearance on television, Musk seemed to make multiple attempts to rekindle interest in Dogecoin. Just a few days later, he informed his Twitter followers that he was collaborating with "Doge devs to increase system efficiency" and that the project appeared to be "possibly fruitful."
Musk informed his Twitter followers that he would not sell his cryptocurrency assets, which included Bitcoin, Ether, and DOGE, during the market fall in March 2022.
" We are more convinced than ever that our lawsuit will be successful", based on an email from the investors' attorney Evan Spencer.