A class-action lawsuit filed in 2022 against Elon Musk and Tesla, which accused the billionaire of manipulating the price of Dogecoin through public appearances and social media posts, was officially withdrawn on November 14, 2024.
As stated in a legal document, the plaintiffs decided to withdraw their appeal from the Second Circuit Court of Appeals and will not seek further judgment or relief from Musk or Tesla.
The investors’ legal representatives also waived their right to appeal the case in any U.S. court. Furthermore, both parties have agreed to drop their respective motions for sanctions related to the lawsuit.
Before the case is fully dismissed, the motion to withdraw the class-action lawsuit still needs approval from United States District Judge Alvin K. Hellerstein. If approved, the two-year-old case will be officially closed.
In 2022, Dogecoin investors filed a $258 billion lawsuit accusing Musk and Tesla of engaging in a “Crypto pyramid scheme.” The lawsuit claimed that Musk’s appearance on Saturday Night Live, where he portrayed a financial analyst and dubbed himself “The Dogefather,” along with his social media endorsements of Dogecoin, amounted to efforts to manipulate the cryptocurrency market. Plaintiff Keith Johnson argued:
“Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin — who assembled the ‘Doge Army,’ including his corporations and a network of billionaires, influencers, and celebrities to boost Dogecoin’s price, market cap, and trading volume.”
In April 2023, Musk’s legal team sought to have the case dismissed, labeling the lawsuit as a “work of fiction.” Their motion stated, “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”
Earlier this year, in March 2024, Musk hinted that Tesla might begin accepting Dogecoin as payment for vehicles “at some point,” although he did not provide further details.
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