Elon Musk Lawsuit Over Dogecoin Manipulation Comes to an End

Key Points:

• Investors withdrew their appeal and motions in Elon Musk lawsuit over Dogecoin manipulation and fraud.
• A Manhattan federal judge dismissed claims that Musk’s tweets and public appearances manipulated Dogecoin’s market.

Accroding to Reuters, the lawsuit filed against billionaire business magnate Elon Musk that accused him of manipulating Dogecoin has been settled.

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Investors Drop Appeal in Elon Musk Lawsuit Over Dogecoin Manipulation

Investors who alleged Musk and Tesla perpetrated fraud and insider trading have filed to drop their appeal of an Aug. 29 dismissal of the case. They are also abandoning a motion that sought to sanction Musk’s attorneys for allegedly impeding the appeal by seeking payment of millions of dollars in legal fees.

Musk and Tesla have, in turn, withdrawn their offer to punish the investors’ attorney for filing what they termed a “frivolous” case constructed on changing legal arguments only to squeeze out money.

On Thursday night, a stipulation to dismiss the appeal and motions from both parties was filed with a federal court in Manhattan. The agreement ends the Elon Musk lawsuit, pending approval by U.S. District Judge Alvin Hellerstein.

The investors originally accused Musk of manipulating the value of Dogecoin with public statements, including on Twitter, as a guest on NBC’s Saturday Night Live, and other public stunts. They said those were aimed at reaping profits from his trades at their expense. Despite revising the Elon Musk lawsuit four times over two years and claiming damages of $258 billion, their claims have fared badly.

Dogecoin Surges Amid Legal Dispute Over Musk’s Public Influence

Judge Hellerstein’s dismissal ruled that Musk’s tweets apparently calling Dogecoin “the future currency of Earth” and suggesting it would be launched by SpaceX could not substantiate securities fraud. He added that these arguments constituted market manipulation and insider trading without support.

Dogecoin, the cryptocurrency he is associated with, saw a meteoric rise last year, driven by support from celebrities and hype on social media. Its market valuation surged to $52 billion at the present. Musk, however, has been considered highly contentious when it comes to involvement with the cryptocurrency.