Jury Finds Elon Musk Liable for Misleading Twitter Investors
A San Francisco panel ruled that specific 2022 tweets about spam and fake accounts unlawfully drove down the platform’s share price.
Summary
- A federal jury found Elon Musk liable for misleading investors during his $44 billion USD acquisition of Twitter in 2022
- Jurors determined that Musk’s public statements regarding fake accounts on the platform artificially depressed Twitter’s stock price
- The verdict could expose the billionaire to billions in damages, though he was cleared of broader scheme allegations
A San Francisco federal jury has delivered a major legal blow to Elon Musk, finding him liable for defrauding Twitter shareholders by intentionally making misleading statements to drive down the company’s stock price. The closely watched civil trial centered on the tumultuous months leading up to his $44 billion USD acquisition of the social media platform in 2022.
The lawsuit, filed on behalf of investors who sold their shares at a loss between May and October 2022, focused heavily on Musk’s public remarks concerning the number of spam and fake accounts on Twitter, now known as X. Jurors found him liable for two specific tweets, including a May 2022 post declaring the buyout was “temporarily on hold,” which contributed to a sharp decline in Twitter’s market value.
While the jury held Musk accountable for the misleading statements, they absolved him of claims that he engaged in a broader, premeditated scheme to defraud investors. The exact financial penalty remains to be determined, but plaintiffs’ attorneys estimate total damages could range from $2.1 billion USD to $2.6 billion USD. Lawyers representing Musk have called the verdict a temporary setback and confirmed plans to appeal the decision.
