The class action lawsuit filed by Dogecoin investors against Elon Musk has ended. The group accused the Tesla CEO of manipulating the price of the meme coin in 2021, alleging fraud and insider trading.
However, they have now withdrawn their appeal after their case was dismissed on August 29.
Both parties in the Dogecoin lawsuit have dropped their claims.
According to a Reuters report, the group has also dropped its request to impose sanctions on Musk’s legal team. Previously, they claimed that Musk’s team interfered in the appeal and demanded excessive legal fees.
In turn, Musk and Tesla withdrew their request to impose sanctions on the investors' lawyers, accusing them of pursuing baseless claims to force a settlement.
The parties have filed a waiver to dismiss the appeal and related motions in Manhattan federal court. It is now awaiting approval by U.S. Federal Judge Alvin Hellerstein.
The lawsuit alleged that Musk manipulated the Dogecoin market through tweets, public appearances, and a stint on "Saturday Night Live," using his statements to influence trading activity.
In his August ruling, Judge Hellerstein stated that Musk’s tweets, such as his claim that Dogecoin could become “the Earth’s future currency” or be sent to the moon via SpaceX, did not constitute securities fraud.
Investors' claims of market manipulation and insider trading were also found to be unconvincing.
The investors initially sought $258 billion in damages and amended their complaint several times over two years before the case was dismissed.
Musk and Trump's Dogecoin Initiative Is Going Full Steam
During this year, Elon Musk has been at the center of most political conversations due to his strong support for Donald Trump and the Republican Party.
After Trump won the election earlier this month, Musk tapped biotech founder Vivek Ramaswamy to lead a new government efficiency department. The department has been named DOGE, which reflects the meme coin.
Since then, Dogecoin has seen a massive surge, outperforming most altcoins in the bull market. DOGE has risen more than 130% since the election results and reached its highest value since May 2021.
Meanwhile, Musk filed a new lawsuit against OpenAI by Sam Altman. In the lawsuit, Musk mentioned the company’s idea to launch a cryptocurrency in 2018, which he opposed.
