The Dogecoin Foundation and Elon Musk’s Boring Company are among the new defendants in the lawsuit
According to a recent Reuters report, the Dogecoin-related lawsuit against Tesla CEO Elon Musk has gotten bigger.
The massive lawsuit has added several new plaintiffs as well as Musk’s Boring Company and the Dogecoin Foundation, the non-profit organization behind the meme coin, among new defendants.
As U.Today reports, Dogecoin investor Keith Johnson filed a $258 billion class-action complaint against Musk, alleging that centbillionaires run a pyramid scheme by promoting the most popular meme coin. Johnson also named Tesla and SpaceX in an early version of his lawsuit.
Musk has been accused of advertising Dogecoin as a “legitimate investment” on his social media profile to artificially inflate its price. The lawsuit alleges that the defendants manage to earn billions by promoting Dogecoin.
In addition to seeking monetary damages, Johnson also wants to prevent Musk and his businesses from promoting the meme cryptocurrency in the future.
Dogecoin experienced a gargantuan rally in the first half of 2021. The meme coin’s spectacular success was mainly fueled by Musk’s frequent tweets that were often accompanied by memes. Dogecoin’s headline-grabbing rally came to a grinding halt following the centibillionaire’s appearance on “Saturday Night Live.”
The lawsuit alleges that the value of the famous bitcoin parody derives entirely from marketing.
Musk remains an avid supporter of Dogecoin in spite of its massive price downturn. Shortly after the $258 billion lawsuit was filed in June, Musk tweeted that he was buying more DOGE.
