Originally published on: November 15, 2024
Investors have withdrawn a class-action lawsuit against Elon Musk and Tesla, alleging that Musk’s media appearances and social media posts manipulated the price of Dogecoin in 2022. The plaintiffs have agreed to drop their appeal and not seek any post-judgment relief from Musk or the automotive company.
The legal filing indicates that lawyers for investors have waived their right to appeal the case in any United States court. Both sides have also agreed to drop motions to sanction each other over the lawsuit. However, the motion to withdraw the lawsuit still requires approval from United States District Judge Alvin K. Hellerstein before the two-year-old litigation officially concludes.
In the initial lawsuit, Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, accusing them of engaging in a “Crypto pyramid scheme.” The investors claimed that Musk’s appearance on Saturday Night Live and his promotion of Dogecoin on social media were attempts at market manipulation.
Despite Musk’s legal team requesting a dismissal in 2023, calling the lawsuit a “work of fiction,” the lawsuit continued until the recent decision to withdraw. Musk hinted earlier this year that Tesla may start accepting Dogecoin as payment for its vehicles, although specifics were not provided.
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