US Jury Finds Elon Musk Misled Investors During Twitter Takeover
A US jury in San Francisco concluded that Elon Musk misled investors by lowering Twitter’s share price in the months before his $44bn takeover. The ruling arose from a class-action lawsuit tied to statements he made in May 2022.
Verdict scope and outcome
Jurors found Musk liable for misleading shareholders over comments linked to the deal. He was cleared on some other fraud claims in the civil trial.
The case involved thousands of shareholders, including many institutional investors. Any damages could reach into the billions of dollars.
Statements under scrutiny
The jury reviewed two tweets and remarks Musk made on a podcast in May 2022. He had said the acquisition could not proceed until Twitter proved bot accounts were under 5 percent.
The legal question was whether those communications intentionally prompted shareholders to sell stock. The trial focused on whether his actions constituted fraud.
Arguments from both sides
Shareholders’ counsel Mark Molumphy argued Musk trashed the company and its executives, which depressed the stock. He said those actions drove investor losses.
Musk’s lawyer Michael Lifrak countered that the billionaire’s concerns about bots were genuine. He added that raising those concerns did not show intent to defraud.
Deal timeline and completion
After announcing the bot concerns, Musk tried to back out of the purchase. Twitter sued to enforce the agreement.
Musk ultimately paid the agreed sum and closed the transaction in October 2022. He later renamed the platform X.
Related legal matters
Musk faces a separate civil case with the US Securities and Exchange Commission. That suit alleges he delayed disclosing initial Twitter purchases in 2022 to buy more at lower prices.
He is reported to be in talks to settle that SEC action. The outcome could affect potential penalties and disclosures.
Key facts at a glance
- Location: San Francisco civil trial.
- Purchase price: $44bn (about £33bn).
- Date of contested statements: May 2022.
- Deal closed: October 2022.
- Musk’s estimated fortune: roughly $814bn.
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