The Dogecoin lawsuit against Elon Musk and Tesla has ended after investors withdrew their appeal. The case, accusing Musk of fraud and market manipulation, was dismissed earlier this year.
The Dogecoin lawsuit against Elon Musk has concluded as a result of investors’ decision to withdrawal their appeal. The case, which accused Musk of fraud and insider trading in connection with the cryptocurrency, was dismissed earlier this year.
In addition, the withdrawal includes a request to eliminate sanctions against Musk’s attorneys, which signifies the conclusion of a prominent legal dispute in federal court.
End of the Dogecoin Lawsuit Against Tesla and Elon Musk
Musk and his electric car company Tesla were accused of engaging in fraudulent activities to manipulate the price of Dogecoin in the Dogecoin litigation, which was initially filed by Dogecoin investors.
Investors alleged that Musk’s tweets, public appearances, and statements—including his appearance on NBC’s “Saturday Night Live”—were exploited to generate profits at their expense.
The investors sought $258 billion in damages at the outset, and they amended their complaint four times over the course of two years.
Nevertheless, on August 29, U.S. District Judge Alvin Hellerstein dismissed the case, asserting that reasonable investors were unable to establish securities fraud based on Musk’s public statements.
The judge observed that Musk’s statements, including his description of Dogecoin as the “future currency of Earth,” could not be reasonably interpreted as confidential trading or market manipulation.
As a result, the investors have formally withdrawn their appeal and their motion to sanction Musk’s legal team for alleged malfeasance this week. In the same vein, Musk and Tesla withdrew their petition to sanction the investors’ attorney for what they deemed to be a “frivolous” and constantly evolving lawsuit.
Consequently, both parties submitted a stipulation to discharge the case in Manhattan federal court on Thursday evening, subject to Judge Hellerstein‘s final approval.
