• A $258 billion lawsuit accusing Elon Musk of Dogecoin market manipulation has been dismissed, ending years of legal contention.
• Both parties agreed to withdraw the appeal and remaining motions, closing the case initially dismissed by a federal judge in August.

A long-standing lawsuit against Tesla chief, Elon Musk, alleging market manipulation of Dogecoin (DOGE) and seeking $258 billion in damages, has come to an end. On Thursday, attorneys representing Dogecoin investors and Musk filed a joint request with a Manhattan federal judge to dismiss the case. The decision also included withdrawing an earlier appeal filed in September and resolving other outstanding motions.

The lawsuit, initiated in 2022, accused Musk and Tesla of engaging in a “pump and dump” scheme with Dogecoin, resulting in financial losses for investors. Musk’s high-profile statements and actions were central to the case, such as his 2021 “Saturday Night Live” appearance that coincided with a DOGE price drop and his decision to replace X’s logo with a Shiba Inu dog.

In August, U.S. District Judge Alvin K. Hellerstein dismissed the case, stating the allegations lacked clarity and referred to Musk’s statements about Dogecoin as “aspirational and puffery.” Despite four amended complaints, the case was dismissed with prejudice, barring further legal proceedings on the matter.

Evan Spencer, the attorney representing Dogecoin investors, noted the challenges faced in pursuing the case.

“As a sole practitioner, I’ve done all I can to hold Musk accountable for market manipulation over the past 2 ½ years, but now my clients and I agree it’s time to withdraw our appeal,” Spencer said.

The legal battle between the parties had been contentious, with accusations of harassment and disputes over legal fees. Spencer previously accused Musk’s legal team of inflating costs to deter an appeal, while Musk’s attorneys countered by labeling the lawsuit “frivolous.”

This development comes amid Dogecoin’s resurgence in the wake of Donald Trump’s election victory and the announcement of the Department of Government Efficiency (D.O.G.E.), co-led by Musk. The events have brought Dogecoin further into the spotlight, with the meme coin experiencing significant price surges and broader public attention.