A lawsuit accusing Elon Musk and Tesla of manipulating the cryptocurrency Dogecoin is coming to an end. The Tesla CEO is often associated with Dogecoin after the businessman mentioned the memecoin on various channels in 2021.
Dogecoin Drama Ends: Elon Musk Walks Free as $258 Billion Lawsuit Is Dropped
The class-action lawsuit accusing Elon Musk and Tesla of manipulating the cryptocurrency Dogecoin has been withdrawn.
Lawyers for both Musk and the investors filed a motion on Thursday in Manhattan federal court to end the case, including dropping an appeal filed in September and any remaining sanctions motions.
BREAKING: Elon Musk and Dogecoin holders win as plaintiffs drop their appeal and legal motions in the long-running, baseless Doge ‘rigging’ lawsuit, finally ending the case.
pic.twitter.com/OTUD6iZCQE
— Sir Doge of the Coin
(@dogeofficialceo) November 15, 2024
The lawsuit, initially filed in 2022, alleged Musk orchestrated a “pump and dump” scheme through public statements and actions that inflated Dogecoin’s value.
The claims cited Musk’s tweets, a “Saturday Night Live” appearance, and even his decision to temporarily replace the X (formerly Twitter) logo with the Dogecoin mascot.
Investors sought $258 billion in damages but faced setbacks as U.S. District Judge Alvin K. Hellerstein dismissed the case in August.
Judge Hellerstein ruled that Musk’s comments, such as calling Dogecoin “the future currency of Earth,” amounted to “aspirational and puffery,” insufficient to prove fraud or manipulation.
The dismissal was made with prejudice, meaning the case could not be refiled.
The initial filing alleged that Musk used his influence as a public figure and billionaire to assemble a “Doge Army” of celebrities, influencers, and investors, boosting Dogecoin’s price, market cap, and trading volume.
The lawsuit’s end follows a contentious legal back-and-forth. Investor lawyer Evan Spencer accused Tesla’s legal team of using their financial resources to intimidate and harass him, a claim Tesla’s lawyers rejected as baseless.
Musk and Tesla countered by seeking sanctions against Spencer, alleging the lawsuit was frivolous, and pursued to extract a quick settlement.
Thursday’s filing seeks to resolve these motions.
Musk’s legal team also agreed to withdraw their request for sanctions against Spencer, including allegations that he inflated legal fees to dissuade an appeal.
Dogecoin Hits New Highs Amid Musk’s Appointment to Lead Trump’s Efficiency Initiative
While the legal battle fades, Dogecoin remains a central element of Musk’s public persona. The meme coin’s price surged this week, climbing over 83% to $0.36, fueled by recent political and economic developments.
Musk’s connection to Dogecoin has reached new heights with his appointment to co-lead the proposed Department of Government Efficiency (D.O.G.E.), part of President-elect Donald Trump’s administration.
The initiative, seen as a nod to Dogecoin’s playful acronym, has thrust the cryptocurrency into mainstream political discourse.
The newly formed DOGE will offer external advice and guidance to the U.S. government while collaborating with the White House and Office of Management and Budget.
Its mission includes implementing structural reforms and fostering an entrepreneurial approach to government operations.
One of DOGE’s key tasks is addressing inefficiencies in the federal government’s $6.5 trillion annual spending.
According to official data, U.S. government expenditures in fiscal year 2024 reached $6.75 trillion, marking a $617 billion increase from the previous year.
Former President Donald Trump expressed optimism about DOGE’s leadership, led by Elon Musk and Vivek Ramaswamy, emphasizing its focus on efficiency and improving American lives.
Since Trump’s election victory, Dogecoin (DOGE), Musk’s favored cryptocurrency, has rallied 150%, briefly hitting $0.40 on Nov. 12, its highest since May 2021.
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