Plaintiffs in the Dogecoin lawsuit against Elon Musk have dropped their appeal. Judge Hellerstein ruled in August that Musk’s public statements did not support fraud charges. Both parties withdrew their motions calling for sanctions.
Investors who were suing Elon Musk and his company Tesla for manipulating the Dogecoin (DOGE) cryptocurrency have dropped their appeal.
The development marks the end of a lawsuit that initially sought $258 billion in damages and centered on allegations of fraud and insider trading.
Dogecoin lawsuit dismissed in August
The lawsuit, filed by Dogecoin investors, alleges that Musk used his influential public platform to artificially inflate Dogecoin’s price for personal gain. Investors pointed to his tweets, public appearances and even an appearance on NBC’s “Saturday Night Live” as evidence of a pattern of market manipulation.
Investors argued that these activities were timed to increase Dogecoin’s value, allowing Musk to profit at their expense.
However, on August 29, U.S. District Judge Alvin Hellerstein dismissed the lawsuit, stating that a reasonable investor could not substantiate claims of securities fraud based solely on Musk’s public statements.
The judge found that comments such as Musk’s claims that Dogecoin is “Earth’s future currency” or that it could be “floated on the moon” by Space I reasoned that there was no basis for this.
After his dismissal, investors filed an appeal against Musk’s legal team, alleging misconduct and seeking sanctions. In response, Musk and Tesla filed their own motion seeking sanctions against investor lawyers who pursued what they characterized as “frivolous” and ever-changing lawsuits.
Appeal has been withdrawn and is awaiting court approval
This week, both parties agreed to withdraw their claims and filed a motion in Manhattan federal court to dismiss the case. The reversal also included requests from investors for sanctions against Musk’s lawyers to be lifted.
The final resolution of the case currently awaits formal approval by Judge Hellerstein.
The conclusion of this lawsuit comes as Musk continues to wield significant influence over the crypto world, which has been unstable due to the re-election of Donald Trump as the 47th President of the United States. becomes.
Musk, who bought Twitter in 2022 and rebranded it to X, has often been at the center of support and controversy surrounding cryptocurrencies, particularly Dogecoin.
