Elon Musk is being accused of insider trading in a proposed class action by investors accusing the Tesla Inc CEO of manipulating the cryptocurrency Dogecoin, costing them billions of dollars.
In a Wednesday night filing in Manhattan federal court, investors said Elon Musk used Twitter posts, paid online influencers, his 2021 appearance on NBC's "Saturday Night Live" and other "publicity stunts" to trade profitably at their expense through several Dogecoin wallets that he or Tesla controls.
Investors said this included when Mr Musk sold about $124 million of Dogecoin in April after he replaced Twitter's blue bird logo with Dogecoin's Shiba Inu dog logo, leading to a 30% jump in Dogecoin's price. The billionaire bought Twitter last October.
A "deliberate course of carnival barking, market manipulation and insider trading" enabled Elon Musk to defraud investors, promote himself and his companies, the filing said.
Alex Spiro, a lawyer for Mr Musk, declined to comment on Thursday. A lawyer for Tesla did not immediately respond to a request for comment. The investors' lawyer did not immediately respond to a separate request.
Investors have accused Elon Musk, the world's second-richest person according to Forbes magazine, of deliberately driving up Dogecoin's price more than 36,000% over two years and then letting it crash.
They included their latest accusations in a proposed third amended complaint, in a lawsuit that began last June.
Mr Musk and Tesla had in March sought a dismissal of the second amended complaint, calling it a "fanciful work of fiction," and on May 26 said another amendment was unjustified.
In a Wednesday order, US District Judge Alvin Hellerstein said he would "likely" allow the third amended complaint, saying the defendants would not likely be prejudiced.
The case is Johnson et al v. Musk et al, US District Court, Southern District of New York, No. 22-05037.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
Jai Jawan: John Abraham Plays Table Tennis With Soldiers Defending China Border
Musk's X Ordered To Pay Rs 5 Crore To Employee Fired For Not Responding To Billionaire's Email Opinion: Opinion | Trump-Musk Chat Shows Innovation Alone Can Save Legacy Media Opinion: Opinion | Trump, Musk, And The Importance Of 'Exaggeration' In Storytelling How Extreme Weather Is Leading To Rise In Child Marriages In Pakistan 3 Days After Big Order On Deposits With SBI And PNB, Karnataka Hits Pause Monkeypox Cases Rising: How Worried Should You Be - 10 Points PM's De-Escalation Message In Call With Netanyahu Amid West Asia Tension Man Scales Wall, Jumps Inside Parliament Annexe Premises, Arrested: Report "Too Many Dead": Gaza Undertakers Stacking "Graves On Top Of Graves" Track Latest News Live on NDTV.com and get news updates from India and around the world.