Dogecoin Drama Ends: Investors Drop Elon Musk Lawsuit Appeal
A lawsuit claiming Tesla’s Elon Musk manipulated Dogecoin to benefit his company has ended.
Investors who initially claimed Musk was manipulating the price of Dogecoin have reportedly withdrew their complaint. Additionally, the group withdrew sanctions against Musk’s lawyers for allegedly interfering with the appeal, including canceling a request for attorney fees.
litigation Tesla and Musk allegedly influenced the price of Dogecoin through social media posts and public statements. They highlighted Musk’s appearance on “Saturday Night Live” in 2021, arguing that comments made by the Tesla owner affected the price of the token, allowing him to profit from these price movements.
Elon Musk’s public statements and stunts ‘affect Dogecoin price’
Investors filed lawsuit against Musk in response to his alleged comments and posts Impacted the price of Dogecoin. The lawsuit highlights Musk’s appearance on NBC’s Saturday Night Live in 2021, where he shared his views on Dogecoin, driving the token’s price increase.
According to the complainants, Musk manipulated the market for his own benefit. They claim Musk manipulated the market by posting on Twitter/X, adding the tag “Dogecoin CEO” and using the DOGE symbol as part of his bio.
The group claimed that the coin’s price surged following Musk’s comments, which included a statement that Tesla would accept Dogecoin as a form of payment. complainant Seeking $258 billion in damages from Elon Musk.
Court dismisses lawsuit against Tesla CEO
Last August, the court dismissed the lawsuit against Tesla and Musk. In dismissing the case, U.S. District Judge Alvin Hellerstein argued that the plaintiffs could not prove securities based solely on Musk’s social media posts.
The judge added that Musk’s statements that Dogecoin was the currency of the world’s future, that it could be used to buy Teslas and could “fly to the moon,” were considered “aspirations and bravado” and were not necessarily factual.
In short, Judge Hellerstein explained, no reasonable person should rely on the Post to complain about securities fraud. The judge further noted that it would be challenging to prove and prove the insider trading and market manipulation charges based solely on the posts.
Musk and Tesla formally withdraw motion
Following complaints of fraud and market manipulation, Musk’s team immediately proposed sanctioning the group’s lawyers for presenting “frivolous cases.” Musk accused the legal team of constantly changing the racketeering argument.
Both sides filed stipulations to dismiss the appeal in Manhattan court last Thursday. The requests require approval from Judge Hellerstein, and once signed, the case will be officially dismissed.
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