Elon Musk Liable for Misleading Twitter Investors in $44 Billion Takeover

A U.S. Federal jury has found Elon Musk liable for misleading Twitter shareholders during the run-up to his $44 billion acquisition of the social media company, now known as X. The verdict, reached on Friday, March 15, 2026, could result in damages reaching up to $2.6 billion, according to attorneys representing the investors CNBC.

The Lawsuit and Allegations

The class action lawsuit, Pampena v. Musk, was initially filed in October 2022, shortly after Musk completed the purchase of Twitter for $54.20 per share CNBC. Investors argued that Musk intentionally misled them with public statements regarding the number of bot and spam accounts on the platform, and his potential backing out of the acquisition deal.

Specifically, the jury found that Musk artificially lowered Twitter’s stock price by between $3 and $8 per share between May and October 2022 due to these statements BBC. Musk had begun tweeting about purported issues with fake accounts in May 2022, and later announced he wanted to terminate the deal Wikipedia.

Jury’s Decision and Potential Damages

After two days of deliberation, the jury reached a unanimous verdict against Musk BBC. The potential damages could amount to thousands of dollars for each investor in the class BBC.

Joseph Cotchett, an attorney for the investors, stated, “This is a great example of what you cannot do to the average investor — people that have 401ks, kids, pension funds, teachers, firemen, nurses” CNBC.

Musk’s Response and Future Outlook

Musk’s legal team, Quinn Emanuel, indicated they intend to appeal the verdict, viewing it as “a bump in the road” CNBC. They also noted the jury did not find a fraudulent scheme.

This is not Musk’s first legal challenge related to his public statements. However, he previously won a 2023 lawsuit brought by Tesla shareholders BBC.

Timeline of the Twitter Acquisition

• April 14, 2022: Musk initially made an unsolicited offer to purchase Twitter Wikipedia.
• April 25, 2022: Twitter’s board unanimously accepted Musk’s $44 billion buyout offer Wikipedia.
• October 27, 2022: The acquisition of Twitter by Musk was completed Wikipedia.
• March 15, 2026: Jury finds Musk liable for misleading Twitter investors CNBC.