- Plaintiffs have dropped their appeal in the Dogecoin lawsuit against Elon Musk.
- Judge Hellerstein in August ruled Musk’s public statements weren’t grounds for fraud claims.
- Both parties have withdrawn motions for sanctions.
Investors who had sued Elon Musk and his company Tesla for manipulating the cryptocurrency Dogecoin (DOGE) have withdrawn their appeal.
This development marks the conclusion of a case that originally sought $258 billion in damages and centred on allegations of fraud and insider trading.
The Dogecoin lawsuit was dismissed in August
The lawsuit, filed by Dogecoin investors, claimed that Musk had used his influential public platform to artificially inflate the price of Dogecoin for personal gain. The investors pointed to his tweets, public appearances, and even an appearance on NBC’s “Saturday Night Live” as evidence of a pattern of market manipulation.
The investors argued that these activities were timed to boost Dogecoin’s value, allowing Musk to profit at their expense.
However, on August 29, US District Judge Alvin Hellerstein dismissed the case, stating that reasonable investors could not establish claims of securities fraud based solely on Musk’s public statements.
The judge reasoned that comments such as Musk’s assertion that Dogecoin was the “future currency of Earth” or could be “floated to the moon” by SpaceX were not credible grounds for claims of insider trading or fraud.
Following the dismissal, the investors filed an appeal and sought sanctions against Musk’s legal team, accusing them of misconduct. In response, Musk and Tesla filed their own motion to sanction the investors’ lawyers for pursuing what they labelled as a “frivolous” and constantly shifting lawsuit.
Appeal withdrawn, awaiting court approval
This week, both parties agreed to withdraw their respective motions and filed a stipulation to dismiss the case in Manhattan federal court. The withdrawal also included the investors’ request to drop sanctions against Musk’s lawyers.
The final resolution of the case now awaits formal approval by Judge Hellerstein.
This lawsuit’s end comes as Musk continues to wield considerable influence over the cryptocurrency world, which has seen volatility sparked by Donald Trump’s reelection as the 47th US president.
Musk, who acquired Twitter in 2022 and rebranded it as X, has often been at the centre of both support and controversy surrounding cryptocurrencies, notably Dogecoin.