Elon Musk Dogecoin Lawsuit Concludes

A high-profile lawsuit alleging fraud and insider trading by Elon Musk and Tesla has been withdrawn.

Initially filed by investors accusing Musk of manipulating the value of Dogecoin (DOGE), the case has been dismissed by U.S. District Judge Alvin Hellerstein. The investors had also sought sanctions against Musk's legal team for alleged interference with the appeal.

In a joint stipulation filed in court, both parties agreed to drop their lawsuits. The agreement requires approval by Judge Hellerstein and effectively ends the legal battle.

The lawsuit centered on Musk's public statements and actions, which included a reference to Dogecoin as a "scam" on Saturday Night Live. Investors claimed these actions were timed to manipulate the price of DOGE, causing them financial losses.

However, Judge Hellerstein dismissed the case, ruling that the investors failed to prove securities fraud. He found that Musk's tweets were too vague for reasonable investors to rely on and dismissed claims of market manipulation and insider trading.

The investors had initially sought $258 billion in damages. Elon Musk, who acquired Twitter (now known as X) in 2022, continues to be associated with Dogecoin's popularity. The conclusion of the lawsuit coincides with Musk's new role as co-chair of the Department of Government Efficiency (DOGE).

*This information is not financial advice.