Investors withdraw appeal in Dogecoin case against Elon Musk

The lawsuit alleging that Elon Musk and electric vehicle company Tesla manipulated the price of the meme coin Dogecoin is nearing conclusion.

Investors who filed a class-action lawsuit have withdrawn their objections, Reuters reported on Nov. 15.

The lawsuit alleged that Musk and Tesla influenced the price of Dogecoin (DOGE) through tweets and public statements on X. One of the allegations centered on Musk’s appearance on NBC’s ‘Saturday Night Live’ in 2021; Here, investors argued that the SpaceX chief’s words affected the price of DOGE, allowing him to profit from the rise.

Complainants’ comments described as manipulative included Musk’s tweets about “CEO of Dogecoin” and his inclusion of the DOGE symbol in his bio. There were also comments about the potential of the meme coin to become a global standard for the financial system.

Allegedly, the DOGE price often rose sharply following these comments, including Tesla’s support of meme money as a payment option.

In the case, $258 billion was requested from the billionaire.

In August, U.S. District Judge Alvin Hellerstein dismissed the lawsuit, which was appealed by investors.

However, with the withdrawal, the case of alleged insider trading and fraud is now over. This comes as Musk’s lawyers withdrew a motion filed by the Tesla CEO over claims for large legal fees against investors’ legal representatives.

All that remains is for Judge Hellerstein to approve the withdrawal requests.

The investors’ decision to end the lawsuit comes just two days after US President-elect Donald Trump nominated Elon Musk and Vivek Ramaswamy to head the new Department of Government Efficiency. Following the news, DOGE’s price increased significantly.