Elon Musk Found Liable for Misleading Twitter Investors
A jury in California has determined that Elon Musk misled investors regarding Twitter (now X) prior to his $44 billion acquisition of the social media company in 2022. The verdict, reached on Friday, March 20, 2026, could result in damages reaching up to $2.6 billion according to 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. Investors alleged that Musk deliberately misrepresented the number of bot and spam accounts on the platform to drive down the stock price as reported by the Associated Press. Musk had publicly questioned Twitter’s reported bot figures, suggesting they were significantly higher than the company claimed, even stating the deal was “temporarily suspended” pending verification.
Jury Findings and Damages
The jury found Musk liable for defrauding shareholders. Damages are estimated to range from $3 to $8 per share for the period investors suffered losses, potentially totaling approximately $2.1 billion in shares and $500 million in options CNBC. The plaintiffs’ attorney, Joseph Cotchett, emphasized the importance of the verdict, stating it was “a great example of what you cannot do to the average investor” .
Musk’s Response and Potential Appeal
Musk’s legal team, Quinn Emanuel, stated they view the verdict as “a bump in the road” and intend to appeal, asserting the jury found both for and against the plaintiffs and did not find a fraud scheme . Given Musk’s estimated net worth of around $814 billion, largely comprised of Tesla shares, he is expected to have sufficient assets to cover any potential damages .
Transformation of Twitter to X
Following the acquisition in October 2022, Musk rebranded Twitter as X and implemented significant changes, including substantial staff reductions – reportedly firing 80% of the workforce according to Fox Business. X has also faced scrutiny, including a French judicial investigation into alleged criminal offenses, such as the distribution of child pornography and the creation of sexual deepfakes, and a €120 million fine from the European Commission for violating the Digital Services Act (DSA) .
This is a developing story and will be updated as more information becomes available.