Investors filed an appeal against Elon Musk in the Dogecoin case

Investors Withdraw Appeal In Dogecoin Lawsuit Against Elon Musk


Plaintiffs in Dogecoin lawsuit against Elon Musk drop appeal Judge Hellerstein ruled in August that Musk's public statements were not grounds for fraud claims. Both sides withdrew their request for sanctions.

Investors who sued Elon Musk and his company Tesla for using the cryptocurrency Dogecoin (DOGE) have withdrawn their appeal.

This is the summary of a lawsuit that originally sought $258 billion in damages and focused on fraud and insider trading.

The Dogecoin lawsuit was dismissed in August

The lawsuit, filed by Dogecoin investors, alleges that Musk used his influential public platform to artificially inflate Dogecoin's value for his own personal gain. Investors have pointed to it in tweets, public appearances and even an appearance on NBC's “Saturday Night Live” as evidence of market manipulation.

The investors argued that these moves were timed to increase the value of Dogecoin, allowing Musk to profit at their expense.

However, on August 29, U.S. District Judge Alvin Hellerstein dismissed the suit, saying that reasonable investors could not substantiate claims of securities fraud based on Musk's public statements.

The judge ruled that comments like Musk's that Dogecoin is the “future currency of Earth” or that SpaceX could “float to the moon” do not lend credibility to questions of insider trading or fraud.

After the firing, the investors filed an appeal against Musk's legal team. In response, Musk and Tesla filed their own lawsuits, pursuing what the investors' lawyers described as “absurd” and constantly shifting lawsuits.

Appeal dismissed, pending court approval

This week, both sides agreed to withdraw their respective pleas and filed a motion to dismiss the case in Manhattan federal court. The exit process also includes a request by the investors to avoid sanctions against Musk's lawyers.

A final decision on the case now awaits formal approval by Judge Hellerstein.

The lawsuit comes as Musk continues to wield significant influence in the cryptocurrency world, which has been fueled by volatility due to the election of Donald Trump as the 47th president of the United States.

In the year Musk, who bought Twitter in 2022 and coined the name X, has often been at the center of both support and controversy for cryptocurrencies, particularly Dogecoin.

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