• A group of Dogecoin (DOGE) holders are amending a class action lawsuit against Elon Musk claiming he used “carnival barking, market manipulation and insider trading” to gain profits at their expense.
• The filing alleges that Musk’s tweets, influencer payments, and other publicity stunts allowed him to manipulate the price of DOGE so he could benefit financially.
• A U.S. District Judge has stated that he will likely approve the amended complaint.
Dogecoin (DOGE) Holders File Amended Class Action Lawsuit Against Elon Musk
A group of disgruntled Dogecoin (DOGE) holders are reportedly seeking to amend a class action lawsuit against billionaire Twitter CEO Elon Musk. The original lawsuit was filed in June 2022 accusing the tech mogul of insider trading related to the popular meme cryptocurrency DOGE.
Claims Of Insider Trading And Market Manipulation
The investors allege financial losses as a result of what they claim were deliberate acts by Musk to inflate the price of DOGE for his own gain. Specifically, they cite an incident in April when Musk sold about $124 million worth of Dogecoin after its price jumped 30%. They also point to tweets, influencer payments, and appearances on NBC’s “Saturday Night Live” as examples of how Musk manipulated the market for his own personal gain.
Judge Likely To Approve Amended Complaint
U.S. District Judge Alvin Hellerstein has stated that he will likely approve the third amended complaint in spite of arguments from Musk’s lawyers attempting to dismiss it as fiction. According to Reuters, this would allow investors who have suffered losses due to alleged market manipulation from Elon Musk to continue with their legal action against him for damages caused by his actions related to DOGE .
Musk Refutes Claims Of Insider Trading And Market Manipulation
Musk’s lawyers have refuted all claims alleging insider trading and market manipulation arguing that his statements should not be considered actual endorsements because they were too vague and silly according