The high-profile lawsuit accusing Elon Musk of manipulating the price of Dogecoin (DOGE) has officially concluded, with investors dropping their appeal against the lawsuit's dismissal, Reuters reported on November 15.
The lawsuit, filed in 2022, alleges that Musk and his electric car company Tesla Inc. used his public influence to commit fraud and insider trading to manipulate DOGE prices. . But District Judge Alvin Hellerstein dismissed the case in August, ruling that the claims lacked sufficient legal basis.
Investors, who initially sought $258 billion in damages, argued that Musk used tweets, media appearances, and publicity to artificially inflate Dogecoin's value for the benefit of individuals and companies. did.
They cited Musk's 2021 Saturday Night Live appearance in which he jokingly referred to Dogecoin as “Hustle” and his tweet describing Dogecoin as “Earth's future currency” as examples of alleged market manipulation. I mentioned it. Hellerstein rejected these arguments, stating that no reasonable investor could interpret such statements as practical investment advice or evidence of fraud.
The lawsuit also alleged that Musk orchestrated trades based on his public statements to maximize profits and harm investors. However, the court found no evidence of insider trading or market manipulation. Hellerstein dismissed related claims, saying the legal theories presented by the investors were inconsistent and baseless.
Both sides moved to end their legal battle last week, with investors dropping their appeals and Musk's team dropping a motion to sanction investors' lawyers for pursuing a “frivolous” lawsuit.
Investors also dropped their request for sanctions against Musk's lawyers for obstructing his appeal by demanding excessive legal fees.
A stipulation dismissing the appeal and related motions was filed in Manhattan federal court on November 14 and awaits Judge Hellerstein's final approval.
Musk bought Twitter in 2022 and rebranded it as “X,” but has faced repeated criticism over his influence over the cryptocurrency market. His actions surrounding Dogecoin have sparked a debate about regulatory challenges raised by some of the biggest names in the speculative market.
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