Multiple Dogecoin (DOGE) investors have grouped and are proposing to amend a class-action lawsuit against Tesla and Twitter CEO Elon Musk for allegedly manipulating the price of the popular meme coin.

In a May 31 filing in the United States District Court for the Southern District of New York, the investors claimed that Musk capitalized on his large social media following on Twitter to profit from DOGE crypto trades via an “undisguised course of cryptocurrency market manipulation.”

The complaint alleges that Musk profited at the expense of other investors by manipulating the price of DOGE to skyrocket through several moves, including changing the Twitter logo to that of Dogecoin. The initial complaint was filed by the investors in June 2022, which was prior to his Twitter takeover. The lawsuit has been amended several times based on the moves of Musk, and the investors request to amend it once more.

According to the amended lawsuit, “This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk, who hijacked an emergent pop-culture phenomenon to cross-promote himself and his companies, and to pad his obscene fortune, preying on the earnest hopes of vulnerable Americans, including war veterans, blue collar workers, and the elderly.”

Sources:

https://cointelegraph.com/news/dogecoin-investors-accuse-elon-musk-of-insider-trading-in-amended-class-action-lawsuit

https://www.reuters.com/legal/elon-musk-is-accused-insider-trading-by-investors-dogecoin-lawsuit-2023-06-01/

https://coinmarketcap.com/currencies/dogecoin/