Elon Musk misled investors during Twitter takeover, US jury finds
US Jury Rules Elon Musk Deceived Investors in Twitter Acquisition
A San Francisco court has ruled that Elon Musk intentionally misled investors during his $44bn takeover of Twitter, now known as X. The decision followed a civil trial where jurors assessed whether the billionaire’s statements directly contributed to the company’s stock decline.
Musk was exonerated from certain fraud claims, though the jury found he manipulated the market by artificially lowering the platform’s share price in the months before finalizing the deal. The case revolved around a class-action lawsuit filed shortly before his acquisition, which alleged deceptive practices.
Central to the trial were two tweets and podcast remarks Musk made in May 2022. He claimed the takeover couldn’t proceed unless Twitter’s CEO confirmed that fewer than 5% of accounts were bots. Shareholders’ lawyer, Mark Molumphy, argued these statements caused stock values to plummet, forcing investors to sell at a loss.
“He trashed the company. Trashed the executives. And tanked the stock,” Molumphy said during his closing remarks.
Musk’s legal team countered that his concerns about bots were genuine. They maintained that highlighting the issue didn’t constitute fraud, as he sought to renegotiate terms rather than deceive. The billionaire cited Twitter’s misrepresentation of fake accounts as justification for stepping back from the original agreement.
Twitter pursued legal action to enforce the deal, leading Musk to eventually finalize the purchase in October 2022. The exact damages remain unspecified, but the settlement could reach billions, impacting many institutional shareholders.
His net worth, currently around $814bn, is largely tied to Tesla shares. Separately, Musk is negotiating to resolve another SEC case, which accuses him of delaying disclosure of his initial Twitter purchases to buy more stock at lower prices.
Additional Context
Meanwhile, headlines highlight unrelated developments: Trump’s surge in wealth, Grok’s criticism of football disasters, and the UK’s integration of Starlink satellites with its mobile network. These stories underscore Musk’s broader influence across industries.
