Elon Musk Found Liable for Misleading Twitter Investors
A California jury on Friday, March 20, 2026, found Elon Musk liable for misleading investors regarding Twitter, now known as X, during the period leading up to his $44 billion acquisition in 2022. While the jury determined Musk made false statements that impacted the stock price, they did not find evidence of a deliberate scheme to defraud investors.
The Case and the Verdict
The civil lawsuit, filed by a group of Twitter shareholders in October 2022, alleged that Musk intentionally drove down the company’s stock price through public statements and tweets as he attempted to back out of the acquisition deal. Shareholders claimed they sold their stock at a loss due to Musk’s comments, missing out on the eventual acquisition price. CNN and PBS reported on the verdict.
Key Findings of the Jury
The jury found Musk liable for misleading investors with statements made in two tweets in May 2022. These tweets suggested the deal to acquire Twitter was “temporarily on hold,” causing a 17% drop in the stock price over two trading sessions. Times Now News detailed the impact of these tweets.
However, the jury absolved Musk of claims that he intentionally schemed to defraud investors. They also found he did not mislead investors with a statement made on a podcast during the same period. NBC News provided details on these specific findings.
Potential Damages
The damages awarded by the jury are estimated to be around $2.5 billion, depending on the number of shareholders who submit claims. Attorneys for the plaintiffs estimate damages could reach $2.1 billion, equating to between $3 and $8 per share, per day, during the relevant period. CNN reported on the potential financial implications.
Musk’s Response and Potential Appeal
Following the verdict, Musk’s lawyers announced their intention to appeal the decision, calling it a “setback.” CNN reported on the legal team’s response.
Background: The Twitter Acquisition
Musk initially agreed to acquire Twitter in April 2022 but subsequently spent months attempting to withdraw from the deal. He ultimately completed the acquisition in October 2022 and rebranded the platform as X.