Court Holds Musk Accountable in Fraud Case Over $44 Billion Twitter Acquisition
SAN FRANCISCO, March 20 — A federal jury in San Francisco found Elon Musk liable for statements made during his 2022 effort to buy Twitter. The verdict holds he misled shareholders in a bid tied to the roughly $44 billion takeover.
Jury decision and scope
The civil trial began on March 2. Jurors returned their verdict after deliberations that started the preceding Tuesday.
They found Musk liable for two specific public statements about the platform’s bot estimates. A separate claim that he ran a broader scheme to defraud investors was not proved.
Statements at issue
Shareholders challenged three comments Musk made after he agreed to buy Twitter in April 2022. Jurors concluded two of the remarks were false or misleading.
One statement paused the deal pending verification that bots comprised less than five percent. The other suggested bots could exceed twenty percent and required proof from Twitter’s CEO.
Damages and legal responses
Damages have not been finalized. Shareholders’ counsel Francis Bottini estimated possible losses near $2.5 billion.
Musk’s legal team at Quinn Emanuel described the verdict as a temporary setback. They said they will seek relief on appeal.
Reactions from lawyers
Shareholders’ lawyers argued Musk’s market-moving posts carried investor harm. They said wealth does not excuse responsibility.
Musk’s lawyer Michael Lifrak said the CEO genuinely worried about bots. He added raising concerns did not prove fraudulent intent.
Timing and related matters
The lawsuit covers investors who alleged they sold shares at depressed prices between May 13 and October 4, 2022. Musk completed the purchase in October 2022 and later rebranded Twitter as X.
Musk has faced other shareholder suits. He prevailed in a 2023 trial over 2018 statements about Tesla and in Delaware litigation over his Tesla compensation package.
Other regulatory and corporate moves
Musk is also negotiating with the U.S. Securities and Exchange Commission over when he disclosed his early Twitter purchases. Prosecutors said he delayed disclosure in 2022, allowing him to buy more shares at lower prices.
In February, SpaceX acquired xAI, the company that housed X. The deal created what was then the world’s most valuable private firm, with an estimated value near $1.25 trillion.
Implications
The outcome prompted commentary that a court holds Musk accountable in a prominent fraud case tied to his high-dollar acquisition attempt. The ruling could affect future investor litigation.
Filmogaz.com will monitor appeals and any damage calculations. The legal process is expected to continue.
