Jury Finds Elon Musk Misled Twitter Investors During 2022 Takeover
A U.S. jury has concluded that Elon Musk misled investors through his public statements during his high-profile 2022 acquisition of Twitter.
The unanimous verdict was delivered in a federal court in San Francisco after two days of deliberation, siding with a group of investors who claimed they suffered financial losses by relying on Musk’s statements and social media posts.
Misleading Claims and Market Impact
Jurors determined that some of Musk’s comments—particularly regarding concerns about fake accounts on Twitter and suggestions that the $44 billion deal might be paused or abandoned—were intentionally misleading. These statements, the jury found, contributed to fluctuations in Twitter’s share price.
According to the ruling, Musk’s remarks may have driven the stock price down by between $3 and $8 per share during the period from May to October 2022, affecting investors who traded shares based on his comments.
Investors Claim Losses
The lawsuit was led by a group of investors, including Oregon-based small business owner Brian Belgrave, who argued that Musk’s public remarks influenced their decisions to buy or sell shares.
Belgrave testified that he sold a significant number of shares in mid-2022 after believing the acquisition would not go ahead. He later incurred losses, as Musk eventually completed the deal at $54.20 per share.
Legal experts say the verdict could result in financial compensation for affected investors, potentially amounting to thousands of dollars per individual.
Musk’s Defence and Past Legal Battles
During court proceedings, Musk denied misleading investors, arguing that his posts were misinterpreted. He maintained that people read too much into his statements.
This case adds to a series of legal challenges linked to Musk’s social media activity. However, he previously prevailed in a 2023 lawsuit filed by Tesla shareholders over alleged misleading tweets.
Background to the Takeover
Musk began raising concerns in 2022 about the number of fake or bot accounts on Twitter, at one point stating the deal was “on hold” before attempting to withdraw altogether. The company took legal action to enforce the agreement, ultimately leading Musk to complete the acquisition in October 2022 at the original price.
He later rebranded Twitter as X.
The verdict underscores the potential legal consequences of market-moving statements by influential figures, particularly when investors rely on them for financial decisions.
