Dogecoin Investors File Amendment to Class Action Lawsuit Against Elon Musk on May 31. The class action lawsuit against Elon Musk was initially filed in June 2022 by an individual named Keith Johnson. The dispute was brought to the Southern District Court of New York.
In the initial lawsuit documents, the plaintiffs claimed to have incurred losses of approximately $86 billion (IDR 1.29 trillion) in cryptocurrency trading. The plaintiffs mentioned experiencing these losses since Elon Musk and his two companies, SpaceX and Tesla, became involved in the trading.
Johnson and other plaintiffs are demanding Elon Musk to pay $86 billion in compensation, along with an additional $172 billion, bringing the total to $258 billion (IDR 3.87 trillion), based on monetary losses and other costs.
Read Also: Getting to Know Dogecoin, Elon Musk's Favorite Meme Coin
Differences between the First and Second Lawsuits The new lawsuit alleges that Elon Musk is responsible for insider trading in the DOGE market. In contrast, the first lawsuit claimed that Elon Musk abused his image as the richest person in the world to manipulate the price of Dogecoin.
Elon Musk is accused of profiting from DOGE trading at the expense of other investors. The second lawsuit also claims that Dogecoin should be classified as a security under the Securities and Exchange Commission. In contrast, the first lawsuit referred to Dogecoin as violating state and federal gambling laws.
The plaintiffs argue that Elon Musk played various roles, including a partner, developer, spokesperson, publicist, salesman, marketer, and promoter in Dogecoin trading.
"This is a securities fraud class action arising from deliberate market manipulation and insider trading by the world's richest person, Elon Musk," according to a statement in the second lawsuit.
Elon Musk's Clarification Pending As of now, Elon Musk has reportedly not provided any clarification regarding the lawsuit. Elon Musk is known for his influence on the price movements of several meme tokens, including DOGE.