Originally published on: November 15, 2024
In a surprising turn of events, the class-action lawsuit filed against Elon Musk and Tesla in 2022, accusing him of manipulating Dogecoin prices through media appearances and social media posts, has been withdrawn by the plaintiffs. This decision was made official on November 14, 2024, as the plaintiffs agreed to drop their appeal and not seek any further relief from Musk and the electric car company.
The legal filing revealed that both parties have agreed to forego any appeals in United States courts and have also decided to abandon motions seeking sanctions against each other in connection to the lawsuit. However, the final approval to dismiss the lawsuit must still be granted by United States District Judge Alvin K. Hellerstein to officially close this two-year-old legal battle.
Initially, Dogecoin investors had filed a whopping $258 billion lawsuit against Musk and Tesla, accusing them of participating in a supposed “Crypto pyramid scheme.” The investors argued that Musk’s appearances on Saturday Night Live and his social media promotion of Dogecoin were all aimed at manipulating the market.
In response to these allegations, Musk and Tesla’s legal team requested a dismissal of the lawsuit, referring to the claims as mere “fiction.” They emphasized that there was nothing illegal about Musk showing support for a legitimate cryptocurrency like Dogecoin.
While Musk hinted earlier in 2024 that Tesla might consider accepting Dogecoin as payment for their vehicles in the future, no concrete details have been provided yet.
With this lawsuit now being dropped, Elon Musk can breathe a sigh of relief, and Dogecoin investors may need to reconsider their legal strategies moving forward. Stay tuned for more updates on this evolving story.
