A group of Dogecoin (DOGE) investors has requested to amend their class-action lawsuit against Elon Musk, the soon-to-be former CEO of Twitter, accusing him of manipulating the price of the popular meme token.
The investors claimed in a recent filing that Musk utilized his massive social media following and media appearances to profit from DOGE trades through blatant cryptocurrency market manipulation.
According to the complaint, Musk’s actions, including changing Twitter’s logo to the Dogecoin logo, caused the token’s price to skyrocket, resulting in him benefiting at the expense of other investors.
The initial complaint was filed in June 2022, before Musk acquired Twitter, but subsequent actions by Musk prompted the investors to amend the lawsuit on multiple occasions.
The investors are seeking court permission to amend their complaint, alleging Musk’s involvement in insider trading of DOGE and arguing that the token should be considered a security according to the standards of the U.S. Securities and Exchange Commission.
Describing the situation as a “securities fraud class action,” the amended lawsuit claims that Musk deliberately engaged in carnival-like market manipulation and insider trading.
Interestingly, Musk changed the Twitter logo to the Dogecoin logo on April 3, shortly after his legal team attempted to dismiss the second amended lawsuit. In his filing, Musk’s team argued that humorous pictures and supportive tweets did not constitute fraud.
As of now, Musk has not addressed the amended complaint on Twitter. However, his statements about Dogecoin and other cryptocurrencies in the past have frequently caused significant price surges. Musk began commenting on DOGE to his millions of followers on Twitter back in 2019.
