In a significant development, the class action lawsuit against Elon Musk and his electric car company, Tesla, has officially been withdrawn.
The lawsuit, filed by a group of investors, accused the American businessman of manipulating the price of Dogecoin (DOGE), a popular memecoin.
The development signals the conclusion of a heated and controversial legal dispute.
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Elon Musk Is No Longer a Defendant in Dogecoin Manipulation Suit
The legal saga, which started with a lawsuit accusing Elon Musk of manipulating Dogecoin’s price for personal gain, has now ended in court.
Investors initially claimed that Musk leveraged his position as the world’s richest person to manipulate Dogecoin’s value.
They pointed to his public stunts and X posts as key factors influencing cryptocurrency prices.
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According to the investors, this manipulation resulted in significant financial losses when the asset’s value plummeted.
The case was initially dismissed in late August 2024. This came after U.S. District Judge Alvin Hellerstein found the investors’ securities fraud claims unproven.
Judge Hellerstein mentioned that Musk’s posts, like “Doge to the Moon” and promoting Dogecoin as the future currency, lacked legal merit.
The judge ruled that no reasonable investor could claim reliance on Musk’s statements for investment decisions or prove market manipulation. The plaintiffs filed an appeal to keep the case in court at the time.
On Thursday, investors and Musk agreed to dismiss the appeal and all related motions, effectively closing the legal proceedings.
What Happened and What Next?
The investors had originally sought a staggering $258 billion in damages, claiming Musk intentionally manipulated Dogecoin’s price for personal gain at investors’ expense.
Over two years, the plaintiffs repeatedly amended their complaint, adjusting legal theories, but failed to convince the court.
The lawsuit gained considerable attention, partly due to Elon Musk’s status as a high-profile figure in both the tech and crypto worlds.
It also raised questions about the level of responsibility public figures have when making statements that could impact the market.
This is especially significant in the volatile world of digital assets, where such statements can lead to market fluctuations.
Despite the case dismissal, the legal skirmishes did not stop there. The investors attempted to sanction Musk’s lawyers, accusing them of interfering with the appeal by demanding excessive legal fees.
In response, Musk’s legal team countered with a motion to sanction the investors’ lawyer. Musk’s team argued that the case was frivolous and designed to pressure a quick settlement.
Ultimately, both sides agreed to withdraw their motions and settle the matter outside court, ending the legal process.
As for what next, the case’s dismissal leaves Musk and Tesla unscathed for now, but the future of Dogecoin remains uncertain.
The crypto community questions whether Musk will continue his recent promotions featuring the memecoin.
Dogecoin Price: Will It Rebound?
With the lawsuit behind them, attention turns to Dogecoin’s future. Despite Musk’s influence, Dogecoin remains a memecoin, driven by community sentiment rather than core fundamentals.
While it shows resilience, it faces stiff competition from other assets offering more utility.
According to current market data, the DOGE price was trading at $0.358600, down 9.09% in the last 24 hours.
Speculatively, Dogecoin’s future may hinge on market trends, Musk’s role with X, and the community’s ability to find new use cases.
Whether it can recover its highs or stabilize long-term growth trends remains uncertain.
