Tesla and Musk, meanwhile, retracted their move to punish the investors’ attorney for allegedly attempting to “extort a quick handout” by pursuing a “frivolous” case using constantly shifting legal theories.
Elon Musk is being sued for allegedly manipulating Dogecoin.
Cryptocurrency investors who claimed that the richest person in the world and his electric vehicle company, Tesla, engaged in insider trading and fraud are rescinding their appeal of a case that was dismissed on August 29.
Additionally, they are dropping their attempt to punish Musk’s attorneys for allegedly meddling in the appeal, including by requesting payment of their exorbitant legal bills.
In the meantime, Musk and Tesla retracted their move to penalise the investors’ attorney for allegedly pursuing a “frivolous” case using constantly shifting legal theories in order to “extort a quick handout.”
On Thursday evening, a stipulation dismissing the appeal and the motions of both sides was filed in Manhattan federal court. US District Judge Alvin Hellerstein must give his approval.
Musk’s and the investors’ lawyers did not immediately respond to requests for comment on Friday.
Investors charged Musk with trading dogecoin at their expense by utilising Twitter posts, an appearance on NBC’s “Saturday Night Live,” and other ploys, such as coordinating trades with Musk’s public remarks and actions.
Hellerstein stated in the dismissal on August 29 that based on Musk’s tweets—which included claims that dogecoin was the future currency of Earth and that his company SpaceX could fly it to the moon—reasonable investors could not demonstrate securities fraud.
The judge added that he did not comprehend the investors’ allegations of insider trading and market manipulation.
Over the course of two years, investors made four amendments to their initial $258 billion complaint.
In 2022, Musk acquired Twitter and changed its name to X.
President-elect Donald Trump appointed Musk and Vivek Ramaswany, the founder of a biotechnology company, to head a new Department of Government Efficiency on Tuesday. The department’s acronym is a play on the name of Dogecoin.
US District Court, Southern District of New York, case number 22-05037, Gorog et al. v. Musk et al.