Elon Musk Found Liable for Misleading Twitter Investors

San Francisco – A federal jury in California found Elon Musk liable for misleading investors regarding his acquisition of Twitter, now known as X, in 2022. The verdict, reached on March 20, 2026, could result in Musk being ordered to pay billions of dollars in damages .

The Lawsuit and Key Findings

The class action securities lawsuit was brought by investor Giuseppe Pampena on behalf of individuals who sold Twitter shares between mid-May and early October 2022 . The jury determined that two tweets posted by Musk in May 2022 contained false statements that contributed to a decline in Twitter’s stock price .

While the court found Musk liable for misleading investors, it absolved him of fraud allegations, specifically finding that he did not intentionally “scheme” to mislead investors .

The Impact of Musk’s Tweets

Jurors agreed that Musk violated a securities rule prohibiting false or misleading statements that could negatively impact a stock’s price . The tweets in question included one stating the Twitter deal was “temporarily on hold” .

Damages and Appeal

Damages awarded to shareholders are estimated to be between $3 and $8 per stock, per day, totaling approximately $2.1 billion . Musk’s legal team has announced their intention to appeal the decision, characterizing it as a “setback” .

Musk’s Acquisition of Twitter/X

Elon Musk acquired Twitter in late October 2022 and subsequently rebranded the platform as X . This legal battle marks a rare defeat for Musk, who has often been referred to as “Teflon Elon” due to his history of successfully navigating legal challenges .