2024-11-17
Dogecoin investors have withdrawn their
lawsuit against Elon Musk, concluding a case that accused him and Tesla of
manipulating the cryptocurrency's value.
This lawsuit, filed by a group of
Dogecoin investors, alleged that Musk and his companies used misleading
statements and promotional tactics to artificially inflate the cryptocurrency's
value, causing investors significant financial losses when the price dropped.
The investors had alleged that Musk's
public statements and actions artificially inflated Dogecoin's price, leading
to significant losses when the value declined.
The investors initially sought $258
billion in damages and amended their complaint multiple times over two years.
However, the court ruled that Musk's
tweets and public statements did not constitute securities fraud.
In August 2024, U.S. District Judge
Alvin Hellerstein dismissed the case, stating that Musk's comments were
"aspirational and puffery" and not grounds for securities fraud
claims.
The lawsuit accusing Elon Musk of
rigging Dogecoin has been dropped.
Investors who claimed Musk and Tesla
committed fraud and insider trading have withdrawn their appeal from an August
dismissal of the case. Both parties agreed to dismiss the allegations and
associated motions, ending the litigation.
Following the dismissal, both parties
agreed to drop their respective motions for sanctions, effectively ending the
legal proceedings.
The lawsuit accusing Elon Musk of
manipulating the price of Dogecoin has been officially dismissed, marking the
conclusion of the case.
Key points include:
Dismissal Ruling: In August 2024, U.S.
District Judge Alvin Hellerstein dismissed the claims, stating that Musk's
public endorsements of Dogecoin were aspirational and did not constitute
securities fraud or manipulation.
Initial Damages Sought: The plaintiffs
originally sought $258 billion in damages, claiming that Musk's public actions,
including tweets and appearances, directly influenced Dogecoin's value.
Final Resolution: Following the judge's
decision, the investors dropped their remaining legal actions and both parties
agreed to withdraw motions for sanctions, ending the legal battle.
