Elon Musk and Tesla are fighting back against allegations of conflicts of interest in a $258 billion lawsuit related to Dogecoin.
Lawyers representing Musk and Tesla recently filed a response in a United States district court, requesting the dismissal of a motion that sought to have them sanctioned over alleged conflicts of interest.
The motion, filed by Evan Spencer, a lawyer representing the plaintiffs in the case against Musk, claimed that the defendants’ legal team was acting as “yes men” and had a conflict of interest by representing both Musk and Tesla.
Spencer argued that the lawyers’ true loyalty lay with Musk alone.
In their response, Musk and Tesla’s legal team firmly rejected Spencer’s allegations, referring to the motion as “unsubstantiated” and “frivolous.”
They cited New York law, stating that there is no conflict of interest when legal teams represent both company officers and the companies themselves, unless they are legal adversaries.
The response further criticized Spencer’s track record, accusing him of a history of filing frivolous motions to delay court procedures.
The defense team denied allegations that they leaked a letter disparaging Spencer’s behavior to the New York Post, instead claiming that it was Spencer who introduced the letter to the jury pool by publicly docketing and introducing it through the motion.
The legal battle between Musk, Tesla, and the plaintiffs revolves around allegations of Musk’s involvement in an illegal racketeering scheme tied to Dogecoin, a cryptocurrency currently valued at $0.07 per coin.
The plaintiffs are seeking a staggering $258 billion in damages.
Musk and Tesla’s lawyers characterized Spencer’s motion as an abuse of process, asserting that it wasted the court’s time and insulted the credibility of their legal team.
They emphasized their dedication to upholding the principles of the legal profession and expressed their commitment to vigorously defending their clients against the allegations.
As the case progresses, both sides will present their arguments and evidence to the court.
The judge will ultimately decide whether the motion to have Musk and Tesla’s legal team sanctioned holds merit.
The outcome of this lawsuit will have significant implications for Musk, Tesla, and the cryptocurrency industry as a whole.