Elon Musk Liable for Misleading Twitter Investors, Jury Rules

A jury in San Francisco found Elon Musk liable for misleading investors regarding his acquisition of Twitter in 2022, despite absolving him of some fraud allegations. The trial centered on Musk's tweets and podcast statements, which were alleged to have intentionally defrauded Twitter shareholders. Potential damages amount to billions.

In a recent ruling, a San Francisco jury found tech magnate Elon Musk liable for misleading investors with statements made during his tumultuous acquisition of Twitter in 2022. The class-action lawsuit, which preceded his $44 billion purchase and rebranding of Twitter to X, focused on whether Musk's public comments intentionally led shareholders astray.

The verdict came after nearly three weeks of deliberation, in which the nine-person jury concluded that Musk misled investors with two tweets suggesting the Twitter deal was 'temporarily on hold.' However, they cleared him of allegations that he schemed to defraud investors intentionally.

The potential damages could reach billions as the case touches a vast pool of shareholders, including many institutional investors. Musk's claims about Twitter's bot prevalence were central to the trial, particularly as he cited this misinformation as a rationale to reconsider the purchase, which he initially attempted to retract before finally complying with the original deal terms.