Elon Musk and Tesla Dodge $258B Dogecoin Lawsuit as Plaintiffs Withdraw Appeal

A 2022 class-action lawsuit filed against Elon Musk and Tesla — alleging that the businessman manipulated the price of Dogecoin (DOGE)

A class-action lawsuit filed against Elon Musk and Tesla alleging that the businessman manipulated the price of Dogecoin (CRYPTO: DOGE) was withdrawn by the plaintiffs on Monday, according to a court filing.

The plaintiffs have agreed to withdraw their appeal from the Second Circuit Court of Appeals and will not seek any post-judgment relief from Musk and the automotive company, the filing showed.

Attorneys for the investors also waived their right to appeal the case in any United States court, and both sides have agreed to drop motions to sanction the other side over the lawsuit.

The motion to withdraw the class-action lawsuit still needs to be approved by United States District Judge Alvin K. Hellerstein before the two-year-old litigation officially concludes.

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The $258 billion Dogecoin investor lawsuit: A quick recap

Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, initially accusing the Tesla CEO and his company of engaging in a “Crypto pyramid scheme.”

The investors argued that Musk’s appearance on Saturday Night Live — where he played a financial analyst and referred to himself as “The Dogefather” — and his apparent promotion of Dogecoin on social media represented attempts at market manipulation. In the initial legal filing, plaintiff Keith Johnson wrote:

Later, the plaintiffs amended the lawsuit to include Elon Musk’s tweets about pausing Bitcoin (CRYPTO: BTC) purchases over environmental concerns and his subsequent tweets about possibly accepting DOGE for Tesla merchandise.

In April 2023, Musk and his legal team requested a dismissal of the lawsuit, calling the litigation a “work of fiction.” In the motion to dismiss, the attorneys wrote, “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 may begin accepting Dogecoin as payment for its vehicles “at some point,” but the CEO did not provide specifics.

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