Investors Withdraw Lawsuit Against Elon Musk Over Dogecoin Manipulation
A lawsuit alleging that Elon Musk manipulated Dogecoin to benefit Tesla has concluded. Investors who claimed Musk influenced Dogecoin’s price have withdrawn their complaint and their request for legal fee coverage.
The lawsuit accused Musk of using social media, particularly his appearance on Saturday Night Live in 2021, to manipulate Dogecoin’s price, leading to significant profits from price fluctuations.
Influence of Public Statements
The investors argued that Musk's statements and posts, including references to being the "Dogecoin CEO" on Twitter/X, significantly impacted the token's market. They claimed a price surge followed Musk’s announcement that Tesla would accept Dogecoin as payment, seeking damages of $258 billion.
Court Dismissal of Case
The court dismissed the case against Musk and Tesla in August, with US District Judge Alvin Hellerstein stating that the plaintiffs could not establish securities fraud based solely on Musk’s social media posts. The judge characterized Musk's remarks about Dogecoin as “aspirational and puffery,” emphasizing that reasonable individuals should not rely on such statements for claims of securities fraud.
Musk and Tesla Withdraw Motion
After receiving the complaint, Musk’s team sought sanctions against the complainants' lawyers for filing what they deemed a frivolous case. Both parties have now filed requests to dismiss the appeal, pending Judge Hellerstein’s approval.
Featured image from DALL-E, chart from TradingView