Major Lawsuit Against Elon Musk Over Dogecoin Market Manipulation to Conclude

The high-profile lawsuit filed against Elon Musk, the prospective head of the Department of Government Efficiency (D.O.G.E), is nearing its end, as indicated by recent legal filings.

Plaintiffs Drop Appeal

Lawyers representing investors seeking $258 billion in damages have withdrawn their appeal of an earlier ruling that favored Musk in August 2024. Judge Hellerstein had dismissed the lawsuit, citing insufficient evidence.

Background of the Case

The lawsuit originated in July 2022 following the collapse of the 2021 bull market. Plaintiffs alleged that Musk illegally manipulated the price of Dogecoin (DOGE), particularly through public appearances and social media posts.

Allegations and Dismissal

Keith Johnson, the lead plaintiff, claimed that Musk's actions caused $86 billion in damages to Tesla's CEO and $172 billion in losses to DOGE traders since 2019. Hellerstein dismissed the case for lack of evidence.

Withdrawal of Appeal

The withdrawal of the appeal signifies that the plaintiffs no longer intend to pursue their case. In response, Musk and Tesla have also dropped their motion for sanctions against the plaintiffs' lawyers.

Pending Approvals

US District Judge Hellerstein must now approve both requests before the lawsuit is officially closed.

Impact on Dogecoin's Price

Dogecoin's value soared following Trump's presidential victory in 2024, possibly due to its association with Musk. However, it has since lost momentum, currently trading at $0.36.