As a seasoned researcher and follower of the cryptocurrency market for over a decade now, I must say that this Dogecoin lawsuit saga has been quite the rollercoaster ride. The allegations against Elon Musk and Tesla were certainly intriguing, but the recent dismissal seems to have put this case to rest, at least for now.
The legal action claiming that Elon Musk artificially inflated Dogecoin prices appears to be wrapping up, with the involved investors choosing to abandon their appeal following the rejection of their case on August 29th.
The focus of this case revolved around allegations that Elon Musk, a prominent global billionaire, and his electric vehicle corporation, Tesla Inc., were involved in activities of deception and unlawful stock trading involving a cryptocurrency based on a dog-themed internet meme.
Both Parties Move To Dismiss Claims In Dogecoin Lawsuit
In a more recent submission, investors have chosen to withdraw their proposition for penalties against Elon Musk’s legal team. They stated that these attorneys intruded upon the appeals process by insisting on significant legal fees.
Instead, Musk and Tesla have chosen to withdraw their request for sanctions against the investors’ lawyer, claiming that the case they are presenting is baseless and filled with ever-changing legal arguments, which appears to be an attempt to force a swift out-of-court settlement.
A stipulation to dismiss the appeal, along with motions from both parties, was filed in federal court in Manhattan on Thursday evening and is awaiting approval from US District Judge Alvin Hellerstein.
By Friday, neither Elon Musk’s nor the investors’ legal teams had provided a response to our queries or issued any formal comments about this recent event.
Court Finds No Grounds For Securities Fraud
Investors alleged that Elon Musk leveraged platforms like Twitter (previously known as X), along with his guest spot on “Saturday Night Live,” to artificially influence the price of Dogecoin. They claim he coordinated his market trades with his public comments, allegedly doing so intentionally.
In his August 29 decision, Judge Hellerstein indicated that reasonable investors wouldn’t be able to prove securities fraud solely from Musk’s social media posts, which contained statements such as Dogecoin being a potential global currency and its potential space travel by SpaceX.
The judge also showed perplexity about the accusations made by the investors concerning market manipulation and insider trading, implying that these claims were unclear and lacked solid legal foundations. At first, the investors demanded an astounding $258 billion in compensation, revising their lawsuit four times over a two-year period.
Currently, the most prominent meme coin, boasting a market capitalization of $52 billion, is being traded at around $0.356. Dogecoin stands out as one of the leading contenders among the top 10 digital assets, reporting increases of approximately 83% and an impressive nearly 190% over the past week and month, respectively.
This development was catalyzed by the announcement that Elon Musk would lead the new Trump Administration’s Department of Government Efficiency (DOGE), a move that investors interpreted as another indication of backing for the canine-themed meme cryptocurrency.
Regardless of its recent increase, Dogecoin is currently sitting 50% lower than its peak value of $0.731, a level it reached during the 2021 market surge. Many anticipate that it could rise even more as we approach the end of this year.
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2024-11-15 20:44