US Lawsuit By States Against Elon Musk & DOGE to Proceed, Dogecoin Price Slips

A US district judge recently allowed a lawsuit against Elon Musk and the Department of Government Efficiency (DOGE) to proceed. The move rejects the Trump administration’s motion to dismiss the case filed by 14 US states.

Moreover, Dogecoin price extended its fall after the judge’s decision, with the price down nearly 3% to $0.22 at the time of writing.

US Judge Allows Lawsuit Against Elon Musk and DOGE to Proceed

U.S. District Judge Tanya Chutkan has cleared a lawsuit by 14 states in the US against Elon Musk’s DOGE efforts to slash federal spending to proceed, as per a court filing on May 28.

Fourteen states, represented by their respective attorneys general, sued Musk, DOGE, U.S. DOGE Service Temporary Organization, and President Donald Trump, alleging violations of the U.S. Constitution clauses and conduct. Per the filing,

“The Constitution does not permit the Executive to commandeer the entire appointments power by unilaterally creating a federal agency pursuant to Executive Order and insulating its principal officer from the Constitution as an ‘advisor’ in name only.”

This is precisely what the American states claim the “Executive” has done.

Judge Dismissed Claims Against President Donald Trump

The district judge dismissed the US states’ claims against Donald Trump, citing that her court would not try to intervene with “the performance of his official duties” as US president.

The lawsuit could proceed further against Musk and DOGE as it made a plausible claim that Musk’s cost-cutting activities were “unauthorized by any law,” reported Reuters. It adds that the case seeks to dismiss DOGE’s power to slash federal spending and shut down U.S. agencies.

Trump and Musk assured major government spending reduction, targeting $2 trillion in spending cuts from the U.S. Budget. Since then, DOGE has slashed thousands of jobs and dismantled various programs of federal agencies.

Trump said the wasteful spending was part of the president’s dramatic overhaul of government. As per Reuters, nearly 20 lawsuits were filed in various federal courts to challenge Musk’s authority, which led to mixed results.

Dogecoin Price Slips Over 3%

Dogecoin price fell 3% in the past 24 hours, with the price trading at $0.22 at the time of writing. The 24-hour low and high were $0.221 and $0.232, respectively. However, the trading volume increased by nearly 10% to $1.28 billion in the last 24 hours, indicating a rise in interest among traders.

Meanwhile, Elon Musk claimed in a CBS interview that he is disappointed about Trump’s spending bill. He added that the bill undermines the DOGE mission and would increase the budget deficit.

Analysts Expect Recovery in Dogecoin Price

Analysts remained optimistic about recovery in Dogecoin price soon. They gave a target price of $3 in the short term.

Analyst Ali Martinez said that DOGE chart looks exciting in the hourly timeframe. He added that DOGE prepares for a rebound as the TD Sequential flashes a buy signal.

In addition, derivatives market data indicates buying sentiment – total DOGE futures open interest in an hour and the last four hours, jumped 0.61% and 1% respectively. However, the total DOGE futures OI was down 2.52% at $2.66 billion at the time of writing, per CoinGlass data.