Dogecoin Drama Ends: Investors Drop Elon Musk Lawsuit Appeal
A lawsuit claiming that Teslas Elon Musk rigged Dogecoin to benefit his company has ended.
According to reports, investors who initially claimed that Musk manipulated Dogecoins price have withdrawn their complaint. Also, the group is withdrawing its bid to sanction Musks lawyers for supposedly interfering with the appeal, including canceling a request to cover their legal fees.
The lawsuit alleged that Tesla and Musk influenced Dogecoins price through social media posts and public statements. They highlighted Musks appearance on Saturday Night Live in 2021, arguing that the Tesla owner made remarks influencing the tokens price, allowing him to profit from these price swings.
Elon Musk Public Statements And Stunts Influenced Dogecoin Price
Investors filed a case against Musk in response to his statements and posts that supposedly influenced the Dogecoin price. The lawsuit highlighted Musks presence in NBCs Saturday Night Live in 2021, where he shared his views on Dogecoin, pushing the tokens price to increase.
According to the complainants, Musk manipulated the market to his benefit. They claimed that Musk manipulated the market through postings on Twitter/X, adding the tag Dogecoin CEO and using the DOGE symbol as part of his bio.
The group alleged that the tokens price surged after Musk commented, including a statement that Tesla will accept Dogecoin as a payment method. The complainants were seeking damages of $258 billion from Elon Musk.
Court Dismisses Case Against Tesla CEO
The court has already dismissed the case against Tesla and Musk last August. In dismissing the case, US District Judge Alvin Hellerstein argued that the complainants cannot prove securities solely based on Musks post on social media.
The judge added that Musks statement, saying that Dogecoin is the worlds future currency, can be used to buy Tesla, and can fly to the moon, are considered aspirational and puffery and not necessarily factual.
In short, Judge Hellerstein explained that no reasonable person should rely on posts to complain about securities fraud. The judge further noted that it would be challenging to show and prove insider trading and market manipulation claims based on posts alone.
Musk And Tesla Officially Withdraw Their MotionImmediately after receiving the fraud and market manipulation complaint, Musks team motioned to sanction the groups lawyers for filing a frivolous case. Musk called out the legal team for their ever-changing arguments to extort money.
Last Thursday, both sides filed stipulations to dismiss the appeal in a Manhattan court. These requests require Judge Hellersteins approval, and upon signature, the cases are officially dismissed.
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Text source: NewsBTC
