The investors who initially claimed Musk manipulated the price of Dogecoin have withdrawn their complaint, according to the report. The group also withdrew its request to punish Musk’s lawyers for interfering with the appeals process, including dropping their request to pay their legal fees.
The lawsuit alleges that Tesla and Musk influenced the price of Dogecoin through social media posts and public statements. They highlight Musk's appearance on Saturday Night Live in 2021, arguing that the Tesla owner made comments that influenced the token's price, allowing him to profit from those price fluctuations.
Elon Musk's Public Statements and Actions Have Affected Dogecoin Price
Investors have filed a lawsuit against Musk in response to his statements and posts that allegedly influenced the price of Dogecoin. The lawsuit highlights Musk's appearance on NBC's Saturday Night Live in 2021, where he shared his views on Dogecoin, driving up the token's price.
According to the complainants, Musk manipulated the market for his own benefit. They claim that Musk manipulated the market through Twitter/X posts, adding the tag “Dogecoin CEO” and using the DOGE symbol as part of his bio.
The group alleges that the price of the token skyrocketed after Musk made comments, including his announcement that Tesla would accept Dogecoin as payment. The plaintiffs are seeking $258 billion in damages from Elon Musk.
Court dismisses lawsuit against Tesla CEO
The court dismissed the lawsuit against Tesla and Musk last August. In dismissing the case, U.S. District Court Judge Alvin Hellerstein argued that the plaintiffs could not prove securities based solely on Musk’s social media posts.
The judge added that Musk's claims that Dogecoin was the world's future currency, could be used to buy Teslas and could "fly to the moon" were considered "ambitious and hyperbolic" and not necessarily true.
In sum, Judge Hellerstein explained that no reasonable person should rely on the posts to bring a claim of securities fraud. The judge further noted that it would be difficult to prove and substantiate claims of insider trading and market manipulation based on the posts alone.
Musk and Tesla officially retract their move
Shortly after receiving the fraud and market manipulation complaint, Musk's team took action to punish the team's lawyers for filing a "frivolous lawsuit." Musk criticized the lawyers for their constantly changing arguments aimed at extortion.
Last Thursday, both sides filed motions to dismiss the appeals in Manhattan court. These requests require approval from Judge Hellerstein, and once signed, the lawsuits are officially dismissed.
