Jury Finds Elon Musk Misled Investors During Twitter Takeover
A US jury has ruled that Elon Musk made misleading public statements during his 2022 acquisition of Twitter, siding with investors who claimed they suffered financial losses as a result.
The unanimous verdict was delivered in a federal court in San Francisco after two days of deliberations. The lawsuit was brought by a group of Twitter shareholders who argued they relied on Musk’s public comments and social media posts during the lead-up to his $44 billion takeover of the platform.
During the trial, Musk maintained that he had not intended to mislead investors, suggesting that his statements had been misinterpreted. However, the jury found that some of his claims – particularly regarding concerns about fake accounts and indications that he might withdraw from the deal – were intentionally misleading.
The court determined that Musk’s statements contributed to fluctuations in Twitter’s share price between May and October 2022, with the stock reportedly dropping by as much as $8 per share during that period. As a result, affected investors could be entitled to financial compensation.
The case was led by investor Brian Belgrave, who testified that he sold shares at a loss after interpreting Musk’s comments as a sign that the acquisition would not go through. Musk ultimately completed the purchase at the previously agreed price of $54.20 per share and later rebranded the platform as X.
Legal experts say the ruling underscores the risks associated with high-profile executives influencing markets through public statements. Trial attorney Monte Mann noted that the decision sends a strong signal about accountability, suggesting that market-moving remarks can carry legal consequences.
This is not Musk’s first legal battle over his public communications. In 2023, he successfully defended against a similar lawsuit filed by Tesla shareholders over his social media activity.
The outcome of this case could result in significant payouts to investors, with individual claimants potentially receiving thousands of dollars in damages.
