A highly publicized trial accusing Elon Musk to manipulate the price of Dogecoin (DOGE) has officially concluded, with investors withdrawing their appeal against the case’s dismissal, Reuters reported on November 15.
The lawsuit, filed in 2022, alleged that Musk and his electric vehicle company, Tesla Inc., engaged in fraud and insider trading by leveraging Musk’s expertise. public influence to manipulate DOGE prices. However, District Judge Alvin Hellerstein dismissed the case in August this year, ruling that the allegations lacked sufficient legal basis.
Investors, who initially sought $258 billion for damages, argued that Musk used tweets, media appearances and promotional stunts to artificially inflate the value of Dogecoin for personal and business purposes.
They cited Musk’s appearance on Saturday Night Live 2021, where he jokingly called Dogecoin a “hustle”, and his tweet describing it as “the future currency of Earth” as examples of his alleged market manipulation. Hellerstein rejected these arguments, saying reasonable investors could not interpret such remarks as actionable investment advice or evidence of fraud.
The case also claimed that Musk coordinated transactions around his public statements to maximize profits and harm investors. However, the court found no evidence of insider trading or market manipulation. Hellerstein rejected the related allegations, saying the legal theories presented by investors were inconsistent and unsubstantiated.
The two sides decided to end the legal battle last week, with the investors withdrawing their appeal and Musk’s team withdrawing its motion to sanction the investors’ lawyer for allegedly filing a “frivolous” lawsuit.
Investors also dropped their demand for sanctions against Elon Musk’s lawyers, whom they accused of interfering with the appeal by demanding excessive legal fees.
A request to dismiss the appeal and related motions was filed Nov. 14 in Manhattan federal court and is awaiting final approval from Judge Hellerstein.
Musk, who acquired Twitter in 2022 and I renamed it Xhas faced repeated criticism for its influence on crypto markets. His actions around Dogecoin have sparked debates about regulatory challenges posed by high-profile figures in speculative markets.