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However, they have now withdrawn their appeal following the dismissal of their case on August 29.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

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Author: Mohammad Shahid