A 2022 class-action lawsuit filed against Elon Musk and Tesla — alleging that the businessman manipulated the price of Dogecoin (DOGE) through media appearances and social media posts — was withdrawn by the plaintiffs on Nov. 14, 2024.
According to the legal filing, the plaintiffs have agreed to withdraw their appeal from the Second Circuit Court of Appeals and not seek any post-judgment relief from Musk and the automotive company.
Lawyers for the investors also waived their right to appeal the case in any United States court, and both sides have agreed to drop motions to sanction the other side over the lawsuit.
The motion to withdraw the class-action lawsuit must still be approved by United States District Judge Alvin K. Hellerstein before the two-year-old litigation officially concludes.
Motion to resolve the lawsuit. Source: Court Listener
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The $258 billion Dogecoin investor lawsuit
Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, initially accusing the Tesla CEO and his company of engaging in a “Crypto pyramid scheme.”
The investors argued that Elon Musk’s appearance on Saturday Night Live — where he played a financial analyst and referred to himself as “The Dogefather” — and his apparent promotion of Dogecoin on social media represented attempts at market manipulation. In the initial legal filing, plaintiff Keith Johnson wrote:
“Defendant Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin — who assembled the ‘Doge Army’ including his corporations and various billionaires, influencers, and celebrities to increase the price, market cap and trading volume of Dogecoin.”
In April 2023, Musk and his legal team requested a dismissal of the lawsuit, calling the litigation a “work of fiction.” In the motion to dismiss, the attorneys wrote, “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”
Earlier this year, in March 2024, Musk hinted that Tesla may begin accepting Dogecoin as payment for its vehicles “at some point,” but the CEO did not provide specifics.
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