Elon Musk Found Liable for Misleading Twitter Shareholders

A U.S. Federal jury has found Elon Musk liable for defrauding Twitter shareholders by attempting to lower the company’s stock price before his $44 billion acquisition in 2022. While the jury determined Musk misled investors, they did not find evidence of a deliberate “scheme” to defraud them.

The Lawsuit and Trial

The civil class action lawsuit was initially filed in October 2022, just weeks before Musk completed the acquisition of Twitter, now known as X. The trial, held in a San Francisco federal courthouse, required Musk to testify and defend his actions during the tumultuous takeover process.

Shareholders alleged that Musk intentionally drove down Twitter’s stock price through tweets and public statements, suggesting the acquisition deal might fall through. Plaintiffs claimed they sold their stock based on these statements, missing out on profits when the acquisition was ultimately finalized.

Damages Awarded

The damages awarded by the jury are estimated to be around $2.5 billion, dependent on the number of shareholders who file claims as part of the class action. Mark Molumphy, an attorney representing the plaintiffs, described the jury’s decision as potentially the largest securities jury verdict in United States history CNN.

Musk’s Acquisition Timeline

Musk initially agreed to purchase Twitter in April 2022, but subsequently spent several months attempting to withdraw from the deal before ultimately completing the acquisition. Reuters

Previous Rulings

A jury previously ruled on Friday, March 15, 2026, that Elon Musk misled Twitter shareholders in 2022. The Hill

The New York Times reported that Elon Musk is responsible for some losses experienced by Twitter investors after he threatened to abandon his purchase of the company four years ago.