A lawsuit alleging that Tesla’s Elon Musk counterfeited Dogecoin for his company has ended.
According to reports, the investors who initially claimed that Musk manipulated the price of Dogecoin have done so I withdrew their complaint. The group is also withdrawing its attempt to punish Musk’s lawyers for allegedly interfering in the appeal, including canceling a request to cover their legal fees.
The suit It claimed that Tesla and Musk influenced the price of Dogecoin through social media posts and public statements. They highlighted Musk’s appearance on Saturday Night Live in 2021, arguing that the Tesla owner made statements that affected the price of the token, allowing him to profit from these price fluctuations.
Elon Musk’s public statements and stunts ‘affected the price of Dogecoin’
Investors filed a lawsuit against Musk in response to his supposed statements and posts It affected the price of Dogecoin. The lawsuit highlighted Musk’s presence on NBC’s “Saturday Night Live” in 2021, where he shared his opinions on Dogecoin, sending the token’s price soaring.
According to the complainants, Musk manipulated the market to his advantage. They alleged that Musk manipulated the market through his Twitter/X posts, adding the tag “Dogecoin CEO” and using the DOGE symbol as part of his biography.
The group claimed that the price of the token rose following Musk’s comments, including a statement that Tesla would accept Dogecoin as payment. Complainants They were demanding $258 billion in damages from Elon Musk.
The court rejects the lawsuit against Tesla CEO
The court had already rejected the case against Tesla and Musk last August. In dismissing the case, U.S. District Judge Alvin Hellerstein argued that the complainants could not prove securities based solely on Musk’s social media post.
The judge added that Musk’s statement, in which he said Dogecoin was the world’s future currency, could be used to buy Tesla, and could “fly to the moon,” was “ambitious and puffy” and not necessarily realistic.
In short, Judge Hellerstein made clear that no reasonable person should rely on publications to complain about securities fraud. The judge also noted that it would be difficult to show and prove allegations of insider trading and market manipulation based on the posts alone.
Musk and Tesla officially withdraw their proposal
Immediately after receiving the fraud and market manipulation complaint, Musk’s team proposed sanctions against the group’s lawyers for filing a “frivolous case.” Musk criticized the legal team for their ever-changing arguments for extortion.
Last Thursday, the two sides filed terms to dismiss the appeal in a Manhattan court. These requests require Judge Hellerstein’s approval, and upon signature, the cases are officially dismissed.
Featured image from DALL-E, chart from TradingView
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