Uncensored Chat: The End of the Dogecoin Class-Action Battle (Updated)
Investors of Dogecoin File Lawsuit Worth Approximately $258 Billion Against Elon Musk in a Group Action Case
Dive into the GIST What's the deal with Elon Musk and Dogecoin's lawyers calling it quits on a years-long legal battle?
A recent filing from Musk and Dogecoin investors' attorneys has seen them agreeing to abandon their class-action lawsuit accusing the billionaire of market manipulation, following years of courtroom drama. The case, initially seeking a whopping $258 billion in damages, was dismissed back in August by a federal judge, citing Musk's statements being "aspirational and puffery."
The lawsuit, filed in 2022, hinged on Musk's public statements regarding Dogecoin, which the investors argued left them with massive financial losses. From claims of market manipulation when Musk made Dogecoin's price skyrocket during his Saturday Night Live appearance in 2021, to replacing X's logo with a Shiba Inu dog last year, the lawsuit scrutinized numerous Dogecoin-related moments caused by Musk.
Lawyer Evan Spencer explained that the decision to withdraw the appeal was due to Musk's uncanny ability to manipulate Dogecoin without fear of facing consequences or legal penalties in the United States courts, as well as Trump's alliance with Musk establishing the Department of Government Efficiency (D.O.G.E.). Following the formation of this initiative, Dogecoin surged by a staggering 300%.
Musk and Tesla declined to comment on the matter.
In dismissing the complaint in August, Judge Alvin K. Hellerstein wrote that it was "not possible to understand" allegations presented by the Dogecoin investors, leading to the case's eventual dismissal. Thursday's filing seeks to address several motions for sanctions filed after the case was dismissed.
Speaking of sanctions, Spencer contested Musk and Tesla's lawyers for including a purportedly confidential settlement demand in a motion by the defendants, as well as alleging they fraudulently inflated their legal bills, seeking $750,000 to discourage an appeal. In response, lawyers for Musk and Tesla stated that Spencer had not indicated the settlement demand was confidential, while agreeing to refile the document temporarily under seal.
Meanwhile, Musk and Tesla's lawyers sought to withdraw their own motion for sanctions against Spencer, which claimed he had brought a "frivolous" lawsuit to "extort a quick handout."
With Dogecoin now strongly linked to America's political landscape, thanks to Musk's generous donations to Trump's super PAC and the Department of Government Efficiency (D.O.G.E.) initiative, it seems that the legal battles surrounding Musk and Dogecoin might be far from over.
Composed by Rosematiks*
Remarks: This story has been revised for accuracy following the input of further information, and the headline figure has been corrected
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Browse on Walrus
- Despite the end of the Dogecoin class-action battle, controversies continue to surround Elon Musk and Dogecoin, with recent focusing on the cryptocurrency's link to America's political landscape.
- The dismissal of the Dogecoin investors' lawsuit against Musk and Tesla in August was met with the filing of several motions for sanctions, a move that disputes the defendants' alleged malpractices in the case.
- With the tech-entertainment mogul's influence over the cryptocurrency market, it's worth noting the ongoing proceedings in the general-news sector, particularly those involving Ethereum [Eth], Bitcoin, ICOs, and other cryptocurrencies and tokens.
- Being aware of these developments in cryptocurrency technology can inform investors and enthusiasts on the latest trends and potential investment opportunities, ultimately helping them make knowledgeable decisions.
