Elon Musk and Tesla's Lawsuit Over Dogecoin Manipulation Allegations Nears Conclusion as Investors Withdraw Appeal

The lawsuit claimed that Musk and Tesla influenced the price of Dogecoin (DOGE) through tweets on X and public statements.

Investors in a class action lawsuit against Elon Musk and his electric vehicle company over allegations of manipulating the price of the meme coin Dogecoin have withdrawn their appeal, bringing the case to a close, Reuters reported on Nov. 15.

The lawsuit, filed in June 2021, claimed that Musk and Tesla influenced the price of Dogecoin (DOGE) through tweets on X and public statements. One key allegation was that Musk's appearance on NBC's ‘Saturday Night Live’ in May 2021 impacted DOGE's price, allowing him to profit from the surge.

Investors alleged that Musk's tweets about “Dogecoin's CEO,” adding the DOGE symbol to his bio, and comments on the potential for the meme coin to become a global standard for the financial system were manipulative. According to the lawsuit, DOGE price often rose sharply following these comments, including one on Tesla's support for DOGE as a payment option.

The lawsuit sought $258 billion from Musk for the alleged insider trading and fraud.

However, U.S. District Judge Alvin Hellerstein dismissed the lawsuit in August, prompting the investors to appeal the decision.

With the withdrawal of the appeal, the case is now concluding. Notably, this comes after Musk's lawyers withdrew the Tesla CEO's motion against the investors' legal representatives over demands for large legal fees.

Pending approval of the withdrawal motions by Judge Hellerstein, the case will officially come to an end.

Investors' decision to withdraw the appeal comes just two days after U.S. president-elect Donald Trump nominated Elon Musk and Vivek Ramaswamy to lead the new Department of Government Efficiency. The news of Musk's potential involvement in the Trump administration led to a significant surge in DOGE's price.