Elon Musk Faces New Class Action Lawsuit Over Dogecoin

Billionaire Elon Musk is once again embroiled in class action lawsuits related to the cryptocurrency Dogecoin (DOGE).

Elon Musk Faces New Class Action Lawsuit Over Dogecoin

According to Reuters, a group of American investors has filed a lawsuit against Elon Musk in Manhattan (New York) court, accusing the billionaire of "insider trading" and "price manipulation" of Dogecoin (DOGE), resulting in hundreds of billions of dollars in losses.

The lawsuit alleges that in 2021, Musk engaged in several actions to "promote" Dogecoin, including frequent mentions on his personal Twitter account, promoting Dogecoin on U.S. television, and other tactics to drive up the price of the cryptocurrency. This allegedly allowed him to profit through various Dogecoin wallets under his control.

In total, Musk is accused of inflating DOGE's price by 36,000%, only to let the coin plummet thereafter.

The investors also claim that Musk sold $124 million worth of DOGE in April 2023, after changing the Twitter logo to the Dogecoin emblem, which led to a 30% spike in DOGE’s price.

Reuters reports that this is the latest development in the lawsuit, which originally began in June 2022. The plaintiffs at that time accused Musk of directing his companies, Tesla and SpaceX, to accept DOGE payments to sway public opinion that Dogecoin was a legitimate investment, which was allegedly not the case. The investors demanded $258 billion in damages from Musk, Tesla, and SpaceX.

Musk’s legal team has sought to have the lawsuit dismissed, calling the claims "fabricated."

A Manhattan court judge has stated they will review the newly submitted lawsuit, noting that the investor group does not appear to have any bias against Musk.

In recent updates, Elon Musk warned the community in late May not to "go all in" on Dogecoin.