Dogecoin Lawsuit Against Elon Musk Ends As Investors Withdraw Appeal

A Dogecoin lawsuit against Elon Musk has officially ended after investors withdrew their appeal of an August 29 dismissal. The lawsuit, which accused Musk and Tesla of fraud and insider trading, also included motions to impose sanctions on both sides’ legal teams.

A stipulation to end the case was filed on Thursday in a Manhattan federal court and awaits final approval from U.S. District Judge Alvin Hellerstein.

Dogecoin Lawsuit Against Elon Musk and Tesla

The Dogecoin lawsuit, brought by Dogecoin investors, alleged that Elon Musk manipulated the cryptocurrency’s price for personal gain through tweets, public appearances, and other promotional activities. These actions reportedly included Musk’s appearance on NBC’s “Saturday Night Live,” where he jokingly referred to Dogecoin as a “hustle.”

Following the August dismissal of the case, investors appealed the decision and also sought sanctions against Musk’s legal team, claiming interference in the appeal process. However, as part of the stipulation filed this week, the investors withdrew both the appeal and their sanctions request.

Musk and Tesla, in response, dropped their motion to sanction the investors’ lawyers, whom they accused of pursuing a “frivolous” and ever-changing lawsuit. Originally filed in 2022, the case underwent four amendments and sought $258 billion in damages.

Judge’s Decision and Market Manipulation Claims

In dismissing the lawsuit, Judge Hellerstein ruled that the plaintiffs failed to provide evidence that Musk’s statements about Dogecoin constituted securities fraud. 

The judge noted that Musk’s tweets — including claims that Dogecoin was the “future currency of Earth” and could be sent “to the moon” by SpaceX — were not sufficient grounds for reasonable investors to base financial decisions.

The judge also dismissed related claims of insider trading and market manipulation, citing a lack of clarity and supporting evidence. The dismissal brought an end to the two-year legal battle that had drawn attention to the influence of public figures on cryptocurrency markets.

Musk’s Growing Role in Government and Other Legal Battles

As the Dogecoin case concludes, Elon Musk remains in the spotlight due to his expanding portfolio of ventures and legal challenges. Earlier this week, President-elect Donald Trump appointed Musk and biotech entrepreneur Vivek Ramaswamy to lead a new federal initiative, the Department of Government Efficiency. The announcement came as Musk continues to oversee operations at Tesla, SpaceX, and X (formerly Twitter).

Meanwhile, Musk is also engaged in a legal battle with OpenAI and Microsoft. Recently, Tesla CEO Elon Musk’s artificial intelligence company, xAI, filed a lawsuit accusing OpenAI and Microsoft of monopolistic practices in the generative AI sector.

Despite the lawsuit’s conclusion, Dogecoin remains a topic of interest for crypto investors. Recent market data revealed that Dogecoin “whales” purchased over $55 million worth of the token within 24 hours, suggesting confidence in the cryptocurrency’s potential. As of press time, DOGE price was trading at $0.3615, a 8% decline from the intra-day high.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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