Dogecoin Investors End Lawsuit Against Elon Musk

A group of Dogecoin investors has ended their class-action lawsuit against billionaire Elon Musk, which claimed he manipulated the price of the memecoin back in 2021.

Case Background

Originally dismissed on August 29, the fourth amended complaint led to cross-motions and appeals filed by both Musk and investors last month. A stipulation dismissing the appeal and both sides' motions was filed in federal court in Manhattan, pending approval by U.S. District Judge Alvin Hellerstein.

The legal action emerged after Dogecoin surged to all-time highs in summer 2021, driven by Musk's frequent tweets about the coin, which increased its price from under $0.10 to about $0.70.

Allegations Against Musk

Investors accused Musk of using social media appearances and stunts to manipulate Dogecoin prices, including tweets suggesting Dogecoin might become the standard for global finance and plans to send a “literal” Dogecoin to the moon via SpaceX.

Hellerstein dismissed the claims, stating these statements were aspirational and constituted “puffery,” not factual, thus not forming the basis of a lawsuit.

Recent Developments

Coincidentally, this occurred the same week Musk was named head of President-elect Donald Trump’s Department of Government Efficiency, or “DOGE,” which aims to drive structural reforms outside the U.S. government.

As of November 15, Dogecoin traded around $0.36, more than doubling since Election Day, holding a market cap of $53 billion.

Originally created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer, Musk expressed his fondness for Dogecoin, citing its humor and association with memes.

The lawsuit at one point alleged Musk engaged in insider trading by selling $124 million in Dogecoin. However, Musk and Tesla have denied owning any crypto wallets linked to suspicious trading or that either entity sold Dogecoin.