- Investors withdraw appeal in $258 billion lawsuit against Musk over Dogecoin market manipulation allegations.
- Judge Hellerstein dismissed the case citing Musk’s statements as aspirational, not constituting fraud.
- Legal dispute ends with mutual agreement to withdraw motions, pending approval from Judge Hellerstein.
The legal dispute between Elon Musk and Dogecoin investors has officially ended. Investors have withdrawn their appeal, closing a case that sought $258 billion in damages.
They had accused Musk of manipulating Dogecoin’s value. Allegations included tweets, TV appearances, and other statements that reportedly impacted the cryptocurrency’s price.
The investors had claimed that Musk’s public statements misled the market. They argued that Musk influenced Dogecoin’s value for personal gain. Judge Alvin Hellerstein dismissed the case in August, citing a lack of fraud evidence. He determined Musk’s remarks were aspirational and could not be classified as fraud. Statements like future currency of Earth did not hold enough weight legally.
After the dismissal, investors initially pursued an appeal. They requested sanctions, accusing Musk’s team of obstructing the legal process. Musk and Tesla countered, labeling the lawsuit as frivolous. They argued that the claims lacked substance and legal basis.
Mutual Agreement Ends All Pending Actions
On November 14, both parties filed to withdraw all motions. This agreement, pending court approval, will end the case officially. The court’s final ruling awaits Judge Hellerstein’s signature.
The lawsuit, filed in 2022, was rooted in Elon Musk’s influence on Dogecoin. It cited events like Musk’s Saturday Night Live appearance, which significantly impacted the coin’s market value. Investors claimed these actions directly led to their personal losses. They argued that Musk’s influence inflated and manipulated the price. These events shook the market, causing volatility. As a result, the investors suffered substantial financial losses. They believed Musk used his platform to mislead Dogecoin holders.
Over the case’s course, tensions rose between the legal teams. Accusations of harassment and inflated legal fees marked the dispute. Musk’s team also argued the investors aimed to pressure Musk into settlement.
If approved, this final withdrawal concludes a complex legal episode. The high-profile case highlighted legal challenges in regulating digital currencies.
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