The vehement legal filing is in reaction to an effort to have Tesla’s attorneys disciplined for suspected misbehavior and conflict of interest.
Elon Musk’s and Tesla’s attorneys responded to a request made by plaintiffs’ attorney Evan Spencer in a $258 billion lawsuit alleging Musk’s involvement in a criminal racketeering operation involving Dogecoin. Musk is charged with engaging in fraudulent cryptocurrency-related operations in the case.
According to Spencer’s motion, there was a conflict of interest because the defense attorney represented both Tesla and Musk, with their allegiance being purely to Musk. This argument suggests that the attorneys might put Musk’s interests ahead of those of the business.
Related: Dogecoin Investors Sue Elon Musk for Insider Trading
Spencer’s request was labeled as “unsubstantiated” and “frivolous” by Musk and Tesla’s legal team in their response, which was submitted on July 6. They contend that the motion is without merit and that there is insufficient support for it.
The attorneys for the defendants contended that, save from situations when the two parties are legal rivals, New York law permits legal teams to represent both a firm’s officials and the company itself. According to them, there isn’t an interest conflict that would violate the rules.
The statement also addressed claims that a letter from Tesla’s legal counsel denouncing Spencer’s filing history as frivolous was leaked to the New York Post. The accusation was refuted by Musk and Tesla’s legal team, who maintained that Spencer was the one who shared the letter with the jury pool. In the letter, Spencer was allegedly accused of often filing frivolous motions to stall court procedures.
The legal team for Musk and Tesla argued that Spencer’s request lacked support and was unjustified. They viewed the request as an unjustified effort to smear the defense attorney.
The allegations in the complaint against Musk concentrate on his alleged participation in a Dogecoin-related illegal racketeering enterprise, and the plaintiffs are seeking $258 billion in damages. The plaintiffs contend that Musk engaged in cryptocurrency-related fraud, which significantly harmed them.
Related: Elon Musk requests dismissal of $258B Dogecoin lawsuit
The court case and Musk and Tesla’s attorneys’ responses shed light on the ongoing legal conflict and the divergent viewpoints of the parties involved. The legitimacy of the motion and the outcome of the case will ultimately be decided by the court.