A 2022 class action lawsuit filed against Elon Musk and Tesla alleging that the businessman manipulated the price of Dogecoin (DOGE) through media appearances and social media posts was withdrawn by the plaintiffs on November 14, 2024.
According to legal filings, the plaintiffs agreed to withdraw their appeal from the 2nd Circuit Court of Appeals and not seek post-judgment relief from Musk and the automaker.
The investors’ lawyers also waived their right to appeal the case in U.S. courts, and both sides agreed to withdraw the other’s application for sanctions in the case.
The motion to withdraw the class action must be approved by U.S. District Judge Alvin K. Hellerstein before the two-year litigation officially concludes.
This is a motion to settle the lawsuit. Source: Court Listener
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$258 billion Dogecoin investor lawsuit
Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, initially accusing the Tesla CEO and his company of engaging in a “crypto pyramid scheme.”
Investors claimed that Elon Musk’s appearance on Saturday Night Live, where he called himself “The Dogefather” as a financial analyst, and his promotion of Dogecoin on social media represented an attempt at market manipulation. In the original legal filing, plaintiff Keith Johnson wrote:
“Defendant Musk is the self-proclaimed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter. Influencers, celebrities, etc. can help increase Dogecoin’s price, market cap, and trading volume.”
In April 2023, Musk and his legal team requested that the lawsuit be dismissed, calling it a “work of fiction.” “It is not illegal to tweet funny pictures or words of support for a legitimate cryptocurrency that continues to have a market capitalization of approximately $10 billion,” the lawyers wrote in the motion to dismiss.
Earlier this year, in March 2024, Musk hinted that Tesla might start accepting Dogecoin as a vehicle payment method “at some point,” but the CEO did not provide specifics.
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