The case against Elon Musk’s Dogecoin investors has been dropped
A 2022 class-action lawsuit against Elon Musk and Tesla — alleging the trader manipulated the price of Dogecoin (DOGE) through media appearances and social media posts — was dismissed by the plaintiffs on November 14, 2024.
According to the legal statement, the plaintiffs have agreed to withdraw the appeal from the Second Circuit Court of Appeals and will not seek any relief from Musk and the automotive company after the judgment.
The investors' lawyers have also waived the right to appeal the case in any US court, and both sides have agreed to reject the other's request for sanctions over the lawsuit.
A motion to drop the class-action lawsuit still must be approved by U.S. District Judge Alvin K. Hellerstein before the two-year trial is over.
A request to settle the case. Source: Court listener
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258 billion dollar dogecoin investor lawsuit
Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, initially accusing the Tesla CEO and the company of participating in a “crypto pyramid scheme.”
The investors argued that Elon Musk's presence on Saturday night – where he played a financial analyst and called himself “Doge's father” – and the promotion of Dogecoin on social media indicated attempts to manipulate the market. In the original legal filing, plaintiff Keith Johnson wrote:
Accused Musk is the self-appointed ‘Dogefather', ‘former CEO of Dogecoin', partner, developer, spokesperson, publicist, seller, marketer and promoter of Dogecoin – who has assembled a ‘Doge Army' including his companies and various billionaires. Influencers and celebrities to increase Dogecoin value, market value and trading volume.
In the year In April 2023, Musk and his legal team filed a motion to dismiss the lawsuit, calling the lawsuit a “work of fiction.” In their motion to dismiss, the attorneys wrote that “there is nothing illegal about tweeting words of support or funny images about a legal cryptocurrency that continues to command a market cap of nearly $10 billion.”
Earlier this year, in March 2024, Musk hinted that Tesla might start accepting Dogecoin as payment for its vehicles “at some point,” but the CEO did not provide specifics.
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