Elon Musk’s Fraud Verdict Faces Scrutiny Over Jury’s ‘420’ Remark

A lawyer representing Elon Musk is seeking a review of the recent jury verdict that found Musk defrauded Twitter investors during his acquisition of the social network, alleging procedural errors and suggesting the jury improperly used the ruling to express a personal sentiment.

Jury’s Symbolic Gesture Raises Concerns

In a letter filed Thursday in federal court in San Francisco, Musk’s attorney, Alex Spiro, accused the jury of “mocking” his client by writing the figure “$4.20” in bright blue on the verdict form, while the rest of the entries were written in black. This number holds significance in cannabis culture, and Musk has referenced it in the past, including in business contexts.

The number 420 is linked to cannabis culture, and Musk has frequently referenced it in interviews, tweets, and business dealings. It was also the price per share ($54.20) used in his $44 billion acquisition of Twitter, now known as X.

Spiro argues the jury’s “number joke” was “undoubtedly intentional” and, combined with other alleged procedural errors, casts doubt on the March 20 verdict, where potential damages could reach $2.5 billion. He requests a “further investigation” by District Judge Charles Breyer.

“The inescapable conclusion that emerges from the verdict form is that the jury saw fit to use its ruling to send a message to Mr. Musk, rather than properly fulfilling its solemn duty to render a fair verdict,” Spiro wrote.

Investors’ Lawyers Defend Verdict

Frank Bottini and Mark Molumphy, attorneys representing the investors, dismissed Spiro’s letter as baseless in a joint statement.

“It is unfortunate that Musk has decided to once again criticize the court and jury, instead of taking responsibility for his own conduct,” Bottini and Molumphy stated. “Given the overwhelming evidence presented at trial, it is unacceptable to attack an extremely diligent juror simply for doing their job.”

Background of the Case

The jury found Musk liable for two statements made shortly after announcing the purchase of Twitter, where he questioned the number of fake and spam accounts (bots) on the platform. He was not found liable for a third statement regarding bots, nor for conspiracy to defraud.

Twitter investors alleged that Musk criticized the company to either renegotiate the purchase offer or be allowed to withdraw from the deal. They contended that his comments negatively impacted Twitter’s stock price, resulting in losses when they sold their shares.

Musk’s Previous Use of ‘420’

This is not the first time Musk has incorporated “420” into his business ventures. In 2020, Tesla reduced the price of the Model S by 4%, to $69,420.

In 2018, Musk tweeted that he had “funding secured” to take Tesla private at $420 per share. This tweet led to a civil fraud lawsuit from the U.S. Securities and Exchange Commission (SEC), which Musk later settled.