Dogecoin Drama Ends: Investors Drop Elon Musk Lawsuit Appeal

A lawsuit claiming that Tesla’s Elon Musk rigged Dogecoin to benefit his company has ended.

According to reports, investors who initially claimed that Musk manipulated Dogecoin’s price have withdrawn their complaint. Also, the group is withdrawing its bid to sanction Musk’s lawyers for supposedly interfering with the appeal, including canceling a request to cover their legal fees.

The lawsuit alleged that Tesla and Musk influenced Dogecoin’s price through social media posts and public statements. They highlighted Musk’s appearance on Saturday Night Live in 2021, arguing that the Tesla owner made remarks influencing the token’s price, allowing him to profit from these price swings.

Investors filed a case against Musk in response to his statements and posts that supposedly influenced the Dogecoin price. The lawsuit highlighted Musk’s presence in NBC’s Saturday Night Live in 2021, where he shared his views on Dogecoin, pushing the token’s price to increase.

According to the complainants, Musk manipulated the market to his benefit. They claimed that Musk manipulated the market through postings on Twitter/X, adding the tag “Dogecoin CEO” and using the DOGE symbol as part of his bio.

The group alleged that the token’s price surged after Musk commented, including a statement that Tesla will accept Dogecoin as a payment method. The complainants were seeking damages of $258 billion from Elon Musk.

The court has already dismissed the case against Tesla and Musk last August. In dismissing the case, US District Judge Alvin Hellerstein argued that the complainants cannot prove securities solely based on Musk’s post on social media.

The judge added that Musk’s statement, saying that Dogecoin is the world’s future currency, can be used to buy Tesla, and can “fly to the moon, are considered “aspirational and puffery” and not necessarily factual.

In short, Judge Hellerstein explained that no reasonable person should rely on posts to complain about securities fraud. The judge further noted that it would be challenging to show and prove insider trading and market manipulation claims based on posts alone.

Immediately after receiving the fraud and market manipulation complaint, Musk’s team motioned to sanction the group’s lawyers for filing a “frivolous case.” Musk called out the legal team for their ever-changing arguments to extort money.

Last Thursday, both sides filed stipulations to dismiss the appeal in a Manhattan court. These requests require Judge Hellerstein’s approval, and upon signature, the cases are officially dismissed.

Featured image from DALL-E, chart from TradingView