I am not an avid supporter of Elon but I am not hapoy about this news. Dogecoin is not a pyramid scheme, it's just a normal POS coin. Elon indeed created hype about dogecoin in the market using his influence over the social media and probably made couple of millions from this activity.
But one thing we need to understand that Elon is one of the most prominent supporters of cryptocurrencies in general. While the confidence about cryptos are low, we need someone like him to raise his voice to support cryptos. Instead he is getting sued. That's unfortunate!
In this case I think elon musk is not guilty at all because he only tweets on dogecoin which he thinks is worth investing in, I have never found his tweet that invites other people to invest in dogecoin, so far investors are too looking at the hype without caring about the risk after The hype ended, I think it's quite ridiculous that the person who sued Elon Musk because actually he knew the risks of investing in altcoins, especially Doge, but still he invested.