Elon Musk dodges $258 billion Dogecoin lawsuit as investors drop appeal
Litigation ends as both sides agree to dismiss allegations and associated sanctions against each other.
Key Takeaways
- Investors dismissed their appeal over the ruling that cleared Elon Musk of manipulating Dogecoin prices.
- The court ruled that Musk's tweets did not constitute securities fraud as claimed by the investors.
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A group of crypto investors who accused Elon Musk of manipulating Dogecoin’s prices has now decided to drop their appeal against an August court dismissal of their case, Reuters reported Friday. They initially sought $258 billion in damages and amended their complaint multiple times over two years.
Both parties have agreed to withdraw their respective motions to sanction each other’s legal teams. The investors had previously requested sanctions against Musk’s lawyers, accusing them of interfering with the appeal process. Meanwhile, Musk and Tesla had filed a motion to sanction the investors’ lawyers for pursuing what they considered a “frivolous” case with constantly changing legal theories, aimed at “extorting a quick handout.”
Both parties filed a stipulation dismissing the appeal and related motions on Thursday in Manhattan federal court, pending approval by US District Judge Alvin Hellerstein.
The lawsuit claims Musk used Twitter posts, an appearance on NBC’s “Saturday Night Live” and other public activities to trade Dogecoin at investors’ expense.
Judge Hellerstein dismissed the case on August 29, ruling that Musk’s statements about Dogecoin being the future currency or being sent to the moon were not sufficient grounds for fraud claims.
The judge also said he did not understand investors’ market manipulation and insider trading claims.
This is a developing story.
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