Investors drop appeal in Dogecoin lawsuit against Elon Musk

The class action lawsuit accusing Elon Musk and Tesla of manipulating Dogecoin's price is close to resolution as investors recently withdrew their appeal. The lawsuit initially claimed that Musk, through tweets and public appearances, influenced the price of Dogecoin, causing sharp price fluctuations from which he allegedly profited. Among the events cited was Musk’s appearance on "Saturday Night Live" in 2021, where he made remarks that allegedly led to a rise in DOGE’s price. Additionally, Musk's various tweets referring to himself as “Dogecoin’s CEO,” along with adding the DOGE symbol to his social media bio, were presented as examples of manipulation. His comments about Dogecoin’s potential to become a global financial standard and Tesla’s support for DOGE as a payment option were also cited as influencing the coin's value.

The investors filed the lawsuit seeking $258 billion in damages, arguing that Musk's actions led to substantial financial gains at their expense. However, in August, U.S. District Judge Alvin Hellerstein dismissed the lawsuit, stating there was insufficient evidence to substantiate the claims of insider trading and fraud. The dismissal prompted the investors to appeal, hoping for a reconsideration of their arguments.

Recently, however, the investors decided to drop the appeal, effectively ending the case. The decision to withdraw comes as Elon Musk’s legal team also retracted a motion against the investors’ legal representatives, who had sought substantial legal fees. Only Judge Hellerstein's formal approval of the withdrawal motions is pending for the case to be fully closed.

This withdrawal coincided with significant news for Musk: just two days prior, U.S. President-elect Donald Trump nominated Musk and Vivek Ramaswamy to lead the newly established Department of Government Efficiency. Following this announcement, Dogecoin’s price saw a significant surge, illustrating Musk's continuing influence on the cryptocurrency market. While the lawsuit appears to be ending, the investors’ decision to withdraw the appeal underscores the challenges of proving market manipulation in the volatile crypto space, especially when it involves public figures with significant social media influence like Musk.