Elon Musk and Tesla Face Sanctions Over Dogecoin Allegations

Lawyers representing tech mogul Elon Musk and Tesla have filed a motion to have a US district court judge dismiss a motion to sanction them over potential conflicts of interest in a $258 billion lawsuit. The suit claims that Musk was involved in an illegal racketeering scheme related to Dogecoin (DOGE).

On July 6, Tesla and Musk’s legal team responded to the June 25 motion filed by Evan Spencer, a lawyer for the plaintiffs. Spencer had referred to the defendants’ lawyers as “yes men” and asked the judge to declare it a conflict of interest for the team to represent both Musk and Tesla.

In their response, the legal team representing Musk and Tesla called Spencer’s motion “unsubstantiated” and “frivolous”. They argued that Musk and Tesla are both focused on the development of web 3.0 companies, crypto Dogecoin, real-time crypto, Elon crypto, AI Doge, and other web 3.0 cryptocurrency features.

Tesla and Elon Musk’s Legal Team Dispute Conflict of Interest Allegations

According to representatives of Elon Musk and Tesla, there is no conflict of interest under New York law. They maintain that the law allows for legal teams to represent the officers of companies they also represent, except in cases where the two entities are legal opponents. This was stated in the July 6 filing:

The filing also addressed allegations made by Spencer that Tesla’s legal team leaked a letter to the New York Post that was supposedly disparaging Spencer’s frivolous use of Rule 11. The letter accused Spencer of having a history of filing frivolous motions to delay court proceedings.

Spencer’s filing for a motion to sanction the defense team claims that this action polluted the jury pool.

However, Musk’s and Tesla’s lawyers deny that they leaked the letter and, in their filing, argue that it was Spencer who introduced the letter to the jury pool by publicly docketing and introducing it to the jury through the June 25 motion.

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