Dogecoin Lawsuit Against Elon Musk Ends as Investors Drop Appeal
Dogecoin investors have dropped their lawsuit against Elon Musk, ending accusations of fraud and insider trading linked to his public statements on the cryptocurrency.
A class-action lawsuit filed by Dogecoin investors against Elon Musk has come to an end. The group accused the Tesla CEO of manipulating the meme coin’s price in 2021, alleging fraud and insider trading.
However, they have now withdrawn their appeal following the dismissal of their case on August 29.
Both Parties of the Dogecoin Lawsuit Have Now Dismissed Their Claims
According to a Reuters report, the investors also dropped a motion seeking sanctions against Musk’s legal team. Previously, they claimed that Musk’s team interfered with the appeal and demanded excessive legal fees.
In turn, Musk and Tesla withdrew their request to sanction the investors’ attorney, accusing them of pursuing baseless claims to force a settlement.
Both parties filed a stipulation to dismiss the appeal and related motions in Manhattan’s federal court. It’s now pending approval by US District Judge Alvin Hellerstein.
The lawsuit alleged that Musk manipulated Dogecoin’s market through tweets, public appearances, and a stint on “Saturday Night Live,” using his statements to influence trading activity.
In his August ruling, Judge Hellerstein stated that Musk’s tweets, such as claiming Dogecoin could become the “future currency of Earth” or be sent to the moon via SpaceX, did not constitute securities fraud.
He also found the investors’ claims of market manipulation and insider trading unconvincing.
Initially, the investors sought $258 billion in damages and revised their complaint multiple times over two years before the case was dismissed.
Musk and Trump’s DOGE Initiative Is in Full Swing
Throughout this year, Elon Musk has been at the center of most political conversations due to his strong endorsement of Donald Trump and the Republican party.
After Trump’s election victory earlier this month, he selected Musk and biotech company founder Vivek Ramaswamy to lead a new Department of Government Efficiency. The acronym for this department was labeled as ‘DOGE’, which echoes the meme coin.
Dogecoin weekly price chart. Source:
BeInCrypto
Since then, Dogecoin has seen a major rally, outperforming most altcoins in the bull market. DOGE is up by over 130% since the election results and reached its highest value since May 2021.
Meanwhile, Musk has filed a new lawsuit against Sam Altman’s OpenAI. In the lawsuit, Musk mentioned the firm’s idea to launch a cryptocurrency back in 2018, which he opposed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
After the US stock market plummeted, "Wood Sister" Cathie Wood said: The more the market worries, the more optimistic I become, the bull market is not over
As the Nasdaq falls into a correction zone, Cathie Wood ("Sister Wood") stated that the prevailing market anxiety actually makes her more confident in the continuation of the bull market. She attributes this correction to pressures in the bond market and controversies over AI capital expenditures, but emphasizes that the technological revolution is still ongoing. She also revealed that ARK has used the opportunity to increase its holdings in high-conviction positions such as SpaceX, and expects the stock market to perform well through 2027.
After the "Black Week" for tech stocks, Wall Street calls for "bottom fishing"
Morgan Stanley has made it clear that "the next two to three weeks are the time to increase positions." Ed Yardeni characterizes the current downturn as a "correction" rather than the bursting of a bubble. Major Wall Street institutions have an average year-end target for the S&P 500 of 7,973 points. However, most strategists believe that the direction of AI policy remains the largest variable.
CoreWeave writes to Texas governor-elect seeking "data center consultation"
In this open letter, Michael Intrator stated that CoreWeave "strongly supports" Hinojosa's principled position that the growth of data centers must benefit the people of Texas. "We welcome the opportunity to work with your transition team to responsibly advance approved projects and to establish clear and lasting standards for future developments," he said.
Crypto prices
More
