Dogecoin lawsuit against Elon Musk dropped amid market surge
Quick Take The lawsuit stems from when dogecoin surged to all-time highs in the summer of 2021. A fourth amended complaint was originally dismissed on Aug. 29, but both Musk and investors filed cross-motions last month.
A group of Dogecoin investors has finally ended their class-action lawsuit against billionaire Elon Musk which claimed the Tesla CEO manipulated the price of the memecoin back in 2021.
A fourth amended complaint was originally dismissed on Aug. 29 but both Musk and the investors filed cross-motions and appeals last month, according to Reuters. "A stipulation dismissing the appeal and both sides' motions was filed on Thursday night in federal court in Manhattan and requires approval by U.S. District Judge Alvin Hellerstein," the report states .
The case stems from when dogecoin surged to all-time highs in the summer of 2021. With his frequent tweets about both the coin and the meme, dogecoin shot up in price from under $0.10 a share to around $0.70.
"Investors accused Musk of using Twitter posts, an appearance on NBC's 'Saturday Night Live' and other stunts to trade dogecoin at their expense, including by timing trades to Musk's public statements and activities," Reuters reports.
"These statements are aspirational and puffery, not factual and susceptible to being falsified. They cannot be the basis of 10b-5 lawsuit and no reasonable investor could rely upon them," Hellerstein wrote in the Aug. 29 dismissal.
Musk and DOGE
The timing is interesting, if not coincidentally, that it happened the same week Musk was named head of President-elect Donald Trump's new Department of Government Efficiency , better known as "DOGE." The initiative will aim to drive large-scale structural reform from outside the U.S. government and take an unprecedented "entrepreneurial approach."
Dogecoin traded around $0.36 at publication time, more than doubling in price since Election Day on Nov. 5. As of Nov. 15, DOGE is the sixth-largest cryptocurrency with a market cap of $53 billion, according to The Block's price page .
Dogecoin was created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer. “I’m actually not actively involved in crypto,” Musk said last month. “I make Dogecoin jokes and stuff because I just kind of like Dogecoin. Because it’s got the best sense of humor, and it has dogs and memes, and I love all those things.”
The class-action complaint at one point claimed Musk engaged in insider trading when he allegedly sold $124 million in dogecoin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Announcement of Bitget spot bot on adding 2 new trading pairs
We are pleased to announce that Bitget spot bot has now added: KOMA/USDT, AIXBT/USDT. Reference 1. Spot grid 2. Crash course on Spot Grid Disclaimer Despite high growth potential, cryptocurrencies still face high risks and volatility. You are strongly advised to do your own research as you invest a
Groundbreaking and Affordable: Why These Cryptos Under $1 Are Gaining Traction
Four High-Yield Altcoins to Watch as They Outshine in a Bear Market
Golden Cross and Cup & Handle Predict Major Upside for JASMY