Withdrawal of Class Action Lawsuit against Elon Musk and Tesla (November 14, 2024)

The class action lawsuit filed in 2022 against Elon Musk and Tesla, alleging manipulation of Dogecoin's price, has been withdrawn by the plaintiffs.

The plaintiffs have agreed to dismiss their appeal from the Second Circuit Court of Appeals and waive their right to post-judgment relief. Additionally, both parties have dropped motions to sanction each other over the lawsuit.

The motion to withdraw the lawsuit must be approved by US District Judge Alvin K. Hellerstein before the case concludes.

Related: Dogecoin Investor Lawsuit (2022)

Dogecoin investors filed a $258 billion lawsuit against Musk and Tesla in 2022, accusing them of engaging in a "Crypto pyramid scheme." The plaintiffs argued that Musk's public statements on Saturday Night Live and social media constituted market manipulation.

In 2023, Musk's legal team requested a dismissal of the lawsuit, arguing that it was "a work of fiction." The attorneys stated that there was nothing unlawful about supporting or promoting a legitimate cryptocurrency with a significant market cap.

In 2024, Musk hinted that Tesla might accept Dogecoin as payment for its vehicles, but did not provide details.