Elon Musk Found Liable for Misleading Investors Over Twitter Takeover
A jury in San Francisco has determined that Elon Musk intentionally misled investors regarding Twitter (now X) prior to his acquisition of the company in 2022. The verdict, reached on Friday, potentially exposes Musk to billions of dollars in damages.
Details of the Case
In 2022, Musk initially offered to purchase Twitter for $54.20 per share, valuing the company at approximately $44 billion 1. But, he subsequently attempted to withdraw from the deal, citing concerns that Twitter had underestimated the number of bot accounts on the platform. Twitter then sued to enforce the original agreement, and Musk ultimately completed the acquisition.
Following the completion of the acquisition, investors filed suit alleging that Musk had deliberately driven down the company’s stock price through public statements disparaging the platform. The jury sided with the plaintiffs, finding that Musk’s statements were intentionally misleading.
Potential Damages
The jury calculated the decrease in Twitter’s stock price resulting from Musk’s statements over a five-month period. While the jury rejected two of the four fraud claims, the potential damages could reach $2.6 billion, according to the investors’ lawyer 1. The exact amount will be determined as shareholders submit claims.
Musk’s Response and Appeal
Musk did not respond to requests for comment from Bloomberg 1. However, his legal team has confirmed that he intends to appeal the decision 1.
Timeline of Key Events
- October 2022: Elon Musk completes acquisition of Twitter 2.
- July 23, 2023: Twitter is rebranded as X 3.
- May 17, 2024: X’s domain name changes from twitter.com to x.com 4.
- July 9, 2025: Linda Yaccarino resigns as CEO of X 5.
This is a developing story and will be updated as more information becomes available.
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