The $258 Million Lawsuit Issued by Dogecoin Investors Against Elon Musk Has Finally Been Dropped

This Thursday, the legal teams from both parties filed a motion to dismiss the lawsuit at the Manhattan Federal Court.

A $258 million lawsuit filed by Dogecoin investors against Elon Musk has finally been dropped.

On Thursday, the legal teams from both parties filed a motion to dismiss the lawsuit at the Manhattan Federal Court. The plaintiffs also dropped the appeal for the case – which accused Musk of influencing the DOGE market.

The lawsuit was filed in 2022 and accused the Tesla CEO of using his influence to pump and dump Dogecoin’s price. At the time Musk had already been known for his open endorsement of the memecoin – and his occasional tweets were responsible for large price spikes for $DOGE.

However, the relationship between Dogecoin and Elon Musk has become tighter since then. Ultimately, the Manhattan Court’s Judge Hellerstein concluded that despite Musk’s major influence on the market, his praise for the cryptocurrency was insufficient to categorize market manipulation.

DOGE Pumps To 86% In The Week

This Friday, Dogecoin performed with a 1.69% increase over the day. A modest performance when compared to $DOGE's performance throughout the week.

Once again, Elon Musk’s involvement with the memecoin can be attributed to why Dogecoin performed so well since Donald Trump’s election. During the campaign, Musk had jokingly mentioned that he’d propose a new Government department called “Department of Government Efficiency” – a clever acronym for “D.O.G.E.”.

At the time most people didn’t really believe Musk was serious about it – however – this week Trump moved forward with the D.O.G.E. initiative. On Tuesday, the President-elect appointed Elon Musk and fellow billionaire Vivek Ramaswamy to command the department.

D.O.G.E. is being put together by Trump, Musk, and Ramaswamy in an attempt to control federal spending moving forward. No one really knows how the department will operate as – in theory – the U.S. Congress is the one with authority to control federal spending.

But nonetheless – Dogecoin enjoyed a massive pump after these events. Over the week, $DOGE gained over 20 cents in price – going from $0.20 on November 8 to today’s value of $0.37.

On November 12 $DOGE traded above the 40-cent mark for the first time since May of 2021 when the currency was retracting from its all-time highest price of $0.68. If Dogecoin's momentum continues strong during Donald Trump’s first year as President, the likelihood of the memecoin testing its ATH zone once again grows stronger.