Dogecoin Investors Drop $248 Billion Class Action Lawsuit Against Elon Musk

What do you do if Elon Musk Dogecoin has the fandom been attached to the White House?

If you are an attorney representing Dogecoin investors in a class action who sought $258 billion in damages over allegations of market manipulation, then you agree to drop your suit against the tech CEO and his electric automaker.

In a Thursday depositLawyers representing Musk and Dogecoin investors have informed a federal judge in Manhattan that both sides want to put an end to the years-long case. This included withdrawing a notice of appeal filed in September and any pending motions.

“In light of the district court’s dismissal by a 90-year-old judge who didn’t ‘get’ the case and Trump’s alliance with Musk creating the Ministry of Government Effectiveness (an acronym for DOGE) and the subsequent 300% increase in Doge since the election, it is clear that Elon Musk is above the law and can manipulate Dogecoin without penalty or limitation by the US courts,” the statement said. attorney Evan Spencer. Decrypt. “As an independent practitioner, I have done everything I can to hold Musk accountable for market manipulation over the past two and a half years, but now my clients and I agree that it is time to withdraw our appeal .”

Lawyers for Musk and Tesla did not immediately respond to requests for comment from Decrypt.

The billionaire won the case in August when U.S. District Judge Alvin K. Hellerstein ruled that Musk’s public statements about Dogecoin were “ambitious and inflated.” rejecting a complaint that had been amended four times with prejudice.

The lawsuit, filed in 2022, claimed that Musk made misleading statements about the meme coin, leaving investors with significant financial losses. Let it be Musk’s Saturday Night Live appearance causing the price of Dogecoin to fall in 2021, or replace X with a Shiba Inu dog last year, the trial scrutinized many Musk’s Most Famous Dogecoin Moments.

At times, the lawsuit between Musk and Dogecoin investors has become acrimonious. Last year, Spencer accused Tesla’s legal team of using a “bottomless war chest“to carry out an illegal harassment campaign against him, which Tesla refuted saying”unfounded and audacious.”

In dismissing the complaint in August, Judge Hellerstein wrote that it was “not possible to understand” the allegations presented on behalf of Dogecoin investors that detailed an alleged “pump and dump” scheme carried out by Musk and Tesla regarding the room itself.

The filing Thursday seeks to remedy several motions for sanctions filed after the case was dismissed. Spencer argued that Musk and Tesla’s lawyers should be disqualified, for example, after an allegedly confidential settlement request was included in a defendants’ motion.

On top of that, Spencer accused Musk and Tesla’s lawyers of “fraudulently inflating their legal fees,” demanding $750,000 to dissuade him from appealing. Musk and Tesla’s lawyers replied specifying that Spencer had not indicated that the settlement request was confidential, while agreeing to refile the document in question under temporary seal.

Meanwhile, lawyers for Musk and Tesla sought to withdraw their own motion for sanctions against Spencer, who claimed he filed a “frivolous” lawsuit to “extort a quick handout.”

After investing about $130 million in a super PAC to help elect Donald Trump as president, Musk’s proposed Department of Government Efficiency (DOGE) increased Dogecoin’s presence in the mainstream. Asset appointed Musk will co-lead the initiative earlier this week alongside Vivek Ramaswamy, a Bitcoin-savvy entrepreneur and former presidential candidate.

With the ticker name of the coin itself in press releases And t-shirts on the Trump campaign site, Dogecoin could be attached to the American political dialogue for a while. Perhaps the reported conduct on behalf of Dogecoin investors was just the beginning of Musk’s antics.

Edited by Andrew Hayward

Editor’s note: This story was updated after publication to include a comment from Spencer.