Key takeaways
- Investors have rejected their appeal against the decision that allowed Elon Musk to manipulate Dogecoin prices.
- The court ruled that Musk’s tweets did not constitute securities fraud, as investors claimed.
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A group of crypto investors who accused Elon Musk of manipulating Dogecoin prices have now decided to drop their appeal against the court’s dismissal of their case in August, Reuters reported Friday. They initially sought $258 billion in damages and amended their complaint several times over two years.
Both parties agreed to withdraw their respective motions seeking to sanction their respective legal teams. Investors had previously sought sanctions against Musk’s lawyers, accusing them of interfering with the appeals process. Meanwhile, Musk and Tesla had filed a motion to sanction the investors’ lawyers for pursuing what they considered a “frivolous” case with ever-changing legal theories, aimed at “extorting quick relief.”
Both sides filed a stipulation Thursday dismissing the appeal and related motions in Manhattan federal court. court, pending approval from U.S. District Judge Alvin Hellerstein.
The lawsuit claims Musk used Twitter posts, an appearance on NBC’s “Saturday Night Live” and other public activities to trade Dogecoin at investors’ expense.
Judge Hellerstein dismissed the case on August 29, ruling that Musk’s statements about Dogecoin being the future currency or being sent to the Moon were not sufficient grounds to support fraud allegations.
The judge also said he did not understand market manipulation by investors and insiders. commercial claims.
This is a developing story.
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