Twitter CEO Elon Musk Accused of Insider Trading in Amended Dogecoin (DOGE) Class Action Complaint: Report
A group of disgruntled Dogecoin (DOGE) holders are reportedly seeking to amend a class action lawsuit against Elon Musk.
The class action lawsuit was originally filed against billionaire Twitter CEO Elon Musk in June of 2022 to include allegations of insider trading.
According to Reuters, the investors claim financial losses as a result of the Twitter CEO’s deliberate acts to inflate the price of the popular meme cryptocurrency.
In the proposed third amendment filed with the Manhattan federal court on Wednesday, investors accuse Musk of using Twitter posts, paying influencers, appearing on an episode of NBC’s “Saturday Night Live” and doing other publicity stunts so he can trade profitably at the expense of other investors.
They also cite an incident in April when Musk sold about $124 million worth of Dogecoin after the price of the token jumped by 30% following the billionaire’s decision to change Twitter’s blue bird icon with DOGE’s Shiba Inu dog logo.
The filing alleges that Musk’s “deliberate course of carnival barking, market manipulation and insider trading” allowed him to defraud investors as well as promote himself and his companies.
In a court order, U.S. District Judge Alvin Hellerstein says he will likely approve the third amended complaint saying that the defendants will not likely be prejudiced.
Musk’s lawyers sought to dismiss the lawsuit in March saying it is a work of fiction. They argued that Musk’s statements about DOGE should not be considered actual endorsements because these were too vague and silly.
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