Dogecoin Investors Drop Appeal in $258B Manipulation Case Against Musk
Investors have withdrawn their appeal in a high-profile lawsuit against Elon Musk and Tesla, alleging price manipulation of Dogecoin cryptocurrency through public statements and social media posts.
A significant legal battle over alleged Dogecoin price manipulation by Elon Musk and Tesla is drawing to a close as investors abandon their appeal efforts.
The plaintiffs behind the class action lawsuit have officially withdrawn their appeal, according to a Reuters report released on Nov. 15.
The lawsuit alleged that Musk and Tesla orchestrated price movements in Dogecoin doge-6.97%Dogecoin through strategic social media communications and public appearances. A key focus was Musk's 2021 Saturday Night Live appearance, which investors claimed was used to influence DOGE's market value for personal gain.
The alleged manipulative behavior included Musk's social media posts about being "Dogecoin's CEO" and his decision to incorporate the DOGE symbol into his social media profile. He also made statements suggesting the cryptocurrency could potentially become a global financial standard.
Historical data showed that DOGE prices frequently experienced significant upswings following such public communications, particularly after Tesla's announcement about accepting the cryptocurrency as payment.
The plaintiffs had initially sought damages of $258 billion from the tech entrepreneur.
U.S. District Judge Alvin Hellerstein dismissed the original lawsuit in August, prompting the investors to file an appeal.
With the appeal now withdrawn, the case alleging insider trading and fraud is effectively concluded. Simultaneously, Musk's legal team has retracted their motion seeking substantial legal fees from the investors' attorneys.
The final step in this legal process awaits Judge Hellerstein's formal approval of the withdrawal motions.
The investors' withdrawal coincidentally follows recent news of President-elect Donald Trump's nomination of Elon Musk and Vivek Ramaswamy to lead the proposed Department of Government Efficiency, an announcement that triggered a notable increase in DOGE's market value.
Jonathan Reed
Jonathan has over 20 years of experience in business management and entrepreneurship. He started his career in traditional industries, such as retail and manufacturing, and gradually transitioned into tech startups and cryptocurrency investment in the last decade. With a Bachelor's degree in Business Administration, he combines formal education with hands-on experience in managing successful ventures.
Jonathan is deeply familiar with market trends, risk management, and investment strategies. Over the past five years, he has developed a strong portfolio in cryptocurrency, stocks, and real estate.