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Lawsuit claiming Elon Musk rigged dogecoin ends
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Lawsuit claiming Elon Musk rigged dogecoin ends
Nov 15, 2024 11:03 AM

NEW YORK, Nov 15 (Reuters) - A lawsuit accusing Elon

Musk of rigging dogecoin is ending.

Investors in the cryptocurrency who said the world's richest

person and his electric car company Tesla committed

fraud and insider trading are withdrawing their appeal from an

Aug. 29 dismissal of their case.

They are also withdrawing a bid to sanction Musk's lawyers

for allegedly interfering with the appeal, including by

demanding payment of their hefty legal fees.

Musk and Tesla, meanwhile, withdrew their motion to sanction

the investors' lawyer for allegedly pursuing a "frivolous" case

with ever-changing legal theories to "extort a quick handout."

A stipulation dismissing the appeal and both sides' motions

was filed on Thursday night in federal court in Manhattan. It

requires approval by U.S. District Judge Alvin Hellerstein.

Lawyers for the investors and Musk did not immediately

respond on Friday to requests for comment.

Investors accused Musk of using Twitter posts, an appearance

on NBC's "Saturday Night Live" and other stunts to trade

dogecoin at their expense, including by timing trades to Musk's

public statements and activities.

In the Aug. 29 dismissal, Hellerstein said reasonable

investors could not prove securities fraud from relying on

Musk's tweets, including that dogecoin was the future currency

of Earth and could be flown to the moon by his company SpaceX.

The judge also said he did not understand the investors'

related market manipulation and insider trading claims.

Investors originally sought $258 billion, and amended their

complaint four times in two years.

Musk bought Twitter in 2022 and rebranded it X.

On Tuesday, President-elect Donald Trump picked Musk and

biotechnology company founder Vivek Ramaswany to lead a new

Department of Government Efficiency, whose acronym echoes

dogecoin's name.

The case is Gorog et al v. Musk et al, U.S. District Court,

Southern District of New York, No. 22-05037.

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