Billionaire Elon Musk is facing fresh accusations as Dogecoin investors filed a class action lawsuit accusing Musk of insider trading. The lawsuit accuses Musk of manipulating the Dogecoin (DOGE) prices leading to billions of dollars in losses for the investors.
As per the Wednesday night filing with the Manhattan federal court, the DOGE investors noted that Mr. Musk used Twitter posts, his 2021 appearance on NBC’s Saturday Night Live television programme, as well as paid online influencers in pushing the Dogecoin (DOGE) price higher.
Besides, the lawsuit also accuses Musk of “publicity stunts” and trading profitably through several Dogecoin wallets that he or Tesla controls, at the expense of investors. The lawsuit mentions the popular episode where Mr. Musk replaced the Twitter logo with the Shiba Inu dog pic following which the DOGE price surged by more than 30% in a matter of days. Investors claim that billionaire Elon Musk sold about US$124 million (S$167 million) worth of Dogecoin in April.
The lawsuit notes that Mr. Musk engaged in a “deliberate course of carnival barking, market manipulation, and insider trading” which enabled him to defraud investors, and promote himself and his companies. The filing notes:
This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk.