A US jury has found tech billionaire Elon Musk liable for misleading Twitter shareholders during his controversial $44 billion acquisition of the social media platform in 2022, marking a significant legal setback in one of the most closely watched corporate deals in recent history.
The verdict, delivered by a federal jury in San Francisco, concluded that Musk’s public statements about the deal misled investors and contributed to fluctuations in Twitter’s share price, causing financial losses to shareholders.
Key Statements Under Scrutiny
The case centered on Musk’s tweets and public remarks during the acquisition process, particularly a May 2022 post in which he claimed the deal was “temporarily on hold.”
Jurors determined that such statements were misleading and had a direct impact on investor decisions, leading some shareholders to sell their holdings at lower prices.
However, the jury stopped short of concluding that Musk had orchestrated a broader scheme to defraud investors, clearing him of some fraud-related claims.
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Billions at Stake
The lawsuit was filed as a class action by Twitter shareholders who argued that Musk’s actions were aimed at driving down the company’s stock price to renegotiate or exit the deal.
Legal experts estimate that damages in the case could reach billions of dollars, with some reports suggesting potential liability of around $2.5 billion or more.
The exact compensation amount will be determined in subsequent proceedings.
Background of the Twitter Takeover
Musk agreed to buy Twitter for $44 billion in April 2022, offering $54.20 per share. However, the deal soon became turbulent as he raised concerns about the number of fake or spam accounts on the platform.
These concerns were repeatedly expressed on social media, which investors claim created uncertainty and volatility in the stock price.
Despite attempts to withdraw or renegotiate, Musk ultimately completed the acquisition in October 2022 and later rebranded the platform as X.
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Legal Troubles Continue
This case adds to a series of legal challenges Musk has faced related to his public statements and market influence.
In a separate matter, the US Securities and Exchange Commission has also investigated Musk over delayed disclosure of his Twitter share purchases, alleging that it allowed him to acquire stock at lower prices.
Musk has denied wrongdoing in both cases and is expected to appeal the latest verdict.
Implications for Markets and Tech Industry
The ruling is being closely watched by regulators and investors worldwide, as it sets an important precedent regarding the influence of high-profile executives on financial markets through social media.
Analysts say the case underscores the risks associated with market-moving statements by influential figures, particularly during major corporate transactions.
For investors, the verdict reinforces the need for transparency and accountability in high-stakes deals, especially in an era where social media plays a central role in shaping market sentiment.
