A U.S. federal jury in San Francisco has ruled that billionaire entrepreneur Elon Musk made misleading public statements during his high-profile 2022 acquisition of Twitter, now known as X.
After two days of deliberation, the jury unanimously agreed that Musk’s tweets and public comments about the platform’s user metrics—particularly concerns over fake accounts or “bots”—and his suggestions that the $44 billion deal might be abandoned were intentionally misleading.
Investors Claim Financial Losses
The lawsuit was brought by a group of investors who argued they relied on Musk’s statements when making trading decisions. The jury found that Musk’s comments contributed to a drop in Twitter’s stock price—estimated between $3 and $8 per share—between May and October 2022.
This decision could result in significant compensation for affected investors, with some expected to receive thousands of dollars in damages.
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Courtroom Clash
During testimony, Musk denied misleading investors, insisting that his statements were misinterpreted.
“If this was a trial on whether I’ve made stupid tweets, I’d say I’m guilty,” Musk admitted during cross-examination.
However, the jury disagreed, concluding that his statements had a material impact on the market.
Background to the Deal
In 2022, Musk began raising concerns about the number of fake accounts on Twitter and announced the deal was “on hold.” He later attempted to withdraw entirely, prompting legal action from the company to enforce the agreement.
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By October 2022, Musk completed the acquisition at the agreed price of $54.20 per share and later rebranded the platform as X.
A Pattern of Legal Scrutiny
This is not the first time Musk’s social media activity has landed him in court. In 2023, he successfully defended himself against a lawsuit filed by shareholders of Tesla over alleged misleading tweets.
Legal Experts React
Legal analysts say the verdict sends a strong signal about the power of influential figures in financial markets.
“If you move the market with your words, you own the consequences,” said trial attorney Monte Mann.
