I do not think that Dogecoin is in trouble with this news. As far as I know, Doge's developer isn't Elon, and Elon is just riding the meme coins for his own benefits. Whatever fraudulent action Elon does in exploiting Dogecoin, it is accounted for on Elon's account alone and Doge's project and community have nothing to do with that case. It might affect the market if the news becomes FUD but I think Doge will be ok.
And also I don't think Elon is getting benefit of this because he is already a multi-billionaire, I mean he won't take the time to invest on these meme coins but if ever he invests on crypto, he will go for a more serious coin instead like bitcoin and ethereum. I think what Elon doing there is just having fun or making fun out of someone else. He thinks people are like a fool to instantly believe on the signs that he is giving on his tweets and he likes that fact.
The doge coin developer is not to be sued here either because he didn't heavily promote his coin but he is being silent for a long time now. It's was the people that are looking for hypes are the ones that awakens this sleeping coin.