A jury has found Elon Musk liable for misleading investors during his controversial 2022 acquisition of Twitter, though he was cleared of intentionally scheming to commit fraud.
The verdict followed a nearly three-week civil trial in San Francisco, where jurors examined whether Musk’s public statements — including tweets claiming the deal was “temporarily on hold” — influenced shareholders to sell their stock at lower prices.
After four days of deliberations, the jury concluded that two of Musk’s tweets misled investors, contributing to financial losses. However, they ruled that his comments on a podcast were opinions rather than deliberate deception and did not amount to a coordinated fraud scheme.
The case stems from Musk’s $44 billion takeover of Twitter, which he later rebranded as X. During the acquisition process, Musk repeatedly raised concerns about the number of fake or spam accounts on the platform, claiming it was higher than the company’s disclosed figure of about 5%.
Shareholders argued that Musk’s statements were strategically designed to drive down Twitter’s stock price, allowing him to renegotiate the deal or withdraw entirely. At one point, the company’s shares dropped nearly 40% below the agreed purchase price, causing significant investor losses.
The jury awarded damages estimated at billions of dollars, including compensation for both stock and options losses. Legal experts say the ruling reinforces accountability in financial markets, especially when influential figures make statements that can move stock prices.
Musk’s legal team has signaled plans to appeal the decision, describing the mixed verdict as only a temporary setback.
The trial also featured testimony from former Twitter executives, including CEO Parag Agrawal and CFO Ned Segal, alongside Musk himself. He maintained that the company misrepresented data about fake accounts and defended his actions as justified.
The ruling adds to a series of legal battles Musk has faced over his public statements, highlighting the growing scrutiny of how social media posts by powerful figures can impact global financial markets.
