Plaintiff Keith Johnson accused Musk, electric car company Tesla Inc, and space tourism company SpaceX of racketeering in promoting Dogecoin and driving up its price, only to see it plummet.
Musk is the founder and CEO of both Tesla and SpaceX.
"Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin in order to profit from its trading," according to the complaint. "Musk used his position as the World's Richest Man to profit, expose, and amuse himself by operating and manipulating the Dogecoin Pyramid Scheme."
The complaint also includes quotes from Warren Buffett, Bill Gates, and others who have questioned the value of cryptocurrency.
Tesla, SpaceX, and Musk's lawyer did not respond immediately to requests for comment.
Johnson's lawyer did not immediately respond to requests for comment on what specific evidence his client has or expects to have proving Dogecoin is worthless and the defendants ran a pyramid scheme.
Johnson is suing for $86 billion in damages, which he claims represents the decline in Dogecoin's market value since May 2021, and he wants it tripled.
He also wants Musk and his companies barred from promoting Dogecoin and a judge to rule that trading Dogecoin is illegal under federal and New York law.
According to the complaint, the selloff of Dogecoin began around the time Musk hosted the NBC show "Saturday Night Live" and, while playing a fictitious financial expert on a "Weekend Update" segment, called Dogecoin "a hustle."
Tesla announced in February 2021 that it had purchased $1.5 billion in bitcoin and had briefly accepted it as payment for vehicles.