The class action lawsuit filed by Dogecoin investors against Elon Musk has been resolved. This group alleged that the CEO of Tesla manipulated the price of the meme coin in 2021, accusing him of fraud and insider trading.
However, they withdrew their appeal after the case was dismissed on August 29.
Claim that Elon Musk manipulated the DOGE market not accepted
According to a Reuters report, the investors also withdrew their request for sanctions against Musk's legal team. Previously, they had claimed that Musk's team interfered with the appeal and demanded excessive legal costs.
In response, Musk and Tesla withdrew their request for sanctions against the investor's lawyers, accusing them of pursuing unfounded claims in an effort to coerce a settlement.
Both parties have filed consent orders related to the appeal in the U.S. District Court for the Southern District of New York, and are awaiting approval from U.S. District Judge Alvin Hellerstein.
The lawsuit alleged that Musk manipulated the Dogecoin market through tweets, public appearances, and activities on "Saturday Night Live".
In the August ruling, Judge Hellerstein said Musk's tweets claiming Dogecoin could become the "future currency of Earth" or be sent to the moon through SpaceX did not constitute securities fraud.
He also found the investors' claims of market manipulation and insider trading unconvincing.
Initially, the investors sought $258 billion in damages and revised their complaint several times over two years, but the case was ultimately dismissed.
DOGE thrives with the 'Trump effect'
Throughout this year, Elon Musk has been a vocal supporter of Donald Trump and the Republican party, being at the center of most political discussions.
Earlier this month, after Trump's election victory, he appointed Musk and biotech entrepreneur Vivek Ramaswamy as leaders of a new government efficiency department with the acronym 'DOGE', evoking the meme coin.
Since then, Dogecoin has seen a major upswing, outperforming most altcoins. Following the election result, DOGE has risen over 130% and reached its highest level since May 2021.
Meanwhile, Musk has filed a new lawsuit against Sam Altman's OpenAI, alleging that the company had plans to launch a cryptocurrency in 2018, which he opposed.
