Elon Musk Found Liable for Misleading Investors During Twitter Acquisition, Damages Could Reach $2.6 Billion

A California jury has found Elon Musk liable for misleading investors regarding Twitter (now X) prior to his $44 billion acquisition of the social media company in 2022. The verdict, issued on Friday, March 20, 2026, could result in damages totaling up to $2.6 billion, according to attorneys representing the plaintiffs in the class-action lawsuit, Pampena v. Musk.

Background of the Lawsuit

The lawsuit was originally filed in October 2022, shortly after Musk completed the purchase of Twitter for $54.20 per share. Musk subsequently rebranded the company as X and integrated it with his artificial intelligence firm, xAI, and his aerospace manufacturer, SpaceX. The core of the case centered on allegations that Musk intentionally misled investors about the number of bot and spam accounts on the platform.

Jury Findings

The jury determined that Musk made materially false or misleading statements in two tweets in May 2022. One tweet stated the Twitter deal was “temporarily on hold.” While the jury found Musk liable for misleading investors, it did not find evidence of a deliberate “scheme” to defraud investors. They also found he did not act fraudulently in comments made on a podcast.

Impact on Investors

Plaintiffs argued that Musk’s statements pressured Twitter’s board to accept a lower acquisition price. They claimed he was motivated by declines in Tesla’s stock price, which would have required him to sell more shares of the automaker to finance the buyout. Investors alleged they sold their shares at a price below $54.20 as a direct result of Musk’s public statements.

Damages and Next Steps

The potential damages are based on estimates of how Musk’s actions affected the share price during the relevant period. Attorneys for the investors estimate it will take approximately 90 days to establish a claims administration process, followed by a couple of months for government processing, before investors can begin to recoup losses. The jury awarded shareholders between about $3 and $8 per stock per day.

Musk’s Response

Musk’s legal team, Quinn Emanuel, stated they view the verdict as “a bump in the road” and intend to appeal the decision. They maintained that Musk’s concerns about bots, spam, and fake accounts were well-founded and did not constitute securities fraud.

Musk’s Net Worth

Despite the potential $2.6 billion in damages, the financial implications for Musk are considered minimal given his current net worth, estimated at approximately $650 billion, according to Bloomberg.

Sources: CNBC, Reuters, NBC News