Nov 16, 2024
6thTrade
The high-profile lawsuit accusing Elon Musk of manipulating Dogecoin has officially been dropped, bringing an end to the case that sought $258 billion in damages without proving fraud or insider trading.
Dogecoin Drama Ends as Lawsuit Against Musk and Tesla Is Dismissed
A class-action lawsuit filed in 2022 alleging Elon Musk and Tesla orchestrated a Dogecoin “pump and dump” scheme has been withdrawn. The motion to conclude the case, including an appeal filed in September, was submitted in Manhattan federal court on Thursday, signaling the end of a contentious legal battle.
The case revolved around claims that Musk inflated Dogecoin’s value through tweets, a Saturday Night Live appearance, and even by temporarily replacing the Twitter logo with Dogecoin’s mascot. Despite investors seeking $258 billion in damages, U.S. District Judge Alvin K. Hellerstein dismissed the case in August, ruling that Musk’s statements—such as calling Dogecoin “the future currency of Earth”—were “aspirational” and not evidence of fraud or manipulation.
The dismissal with prejudice ensures the case cannot be refiled.
The Allegations: “Doge Army” and Market Manipulation
The lawsuit accused Musk of leveraging his celebrity status to create a “Doge Army” that artificially inflated Dogecoin’s price and trading volume. Investors claimed this orchestrated scheme led to significant losses when the cryptocurrency’s value dropped. However, Musk’s legal team countered by alleging the lawsuit was frivolous and aimed at securing a quick settlement.
Legal Drama Ends with Sanctions Dropped
Investor lawyer Evan Spencer alleged Tesla’s legal team engaged in harassment, while Musk’s lawyers pursued sanctions against him for filing a baseless lawsuit. As part of Thursday’s motion, both parties agreed to withdraw these claims, marking the end of a heated legal exchange.
Dogecoin Surges Amid Political Headlines
As the lawsuit closes, Dogecoin’s value has skyrocketed, jumping over 83% to $0.36 this week, spurred by Musk’s new political appointment. Musk has been tapped to co-lead the Department of Government Efficiency (D.O.G.E.), a new initiative under President-elect Donald Trump’s administration.
The program, named with a nod to Dogecoin’s playful acronym, aims to streamline federal government spending, currently at $6.75 trillion annually. Co-led by Musk and entrepreneur Vivek Ramaswamy, the initiative is designed to bring innovation and efficiency to U.S. governance.
Dogecoin’s Meteoric Rise
Dogecoin’s price has soared by 150% since Trump’s election win, briefly hitting $0.40—its highest point since May 2021. As Musk continues to advocate for the meme coin, Dogecoin remains a pivotal part of his public persona, keeping its momentum strong.
Key Takeaway:
With the lawsuit behind him, Elon Musk emerges unscathed, and Dogecoin’s recent price surge reflects renewed market confidence. As the meme coin gains mainstream political attention through Musk’s leadership in D.O.G.E., its future looks brighter than ever.
