Elon Musk Found Liable for Defrauding Twitter Shareholders

A U.S. federal jury found Elon Musk liable for defrauding Twitter shareholders by attempting to manipulate the social media company's stock price during a $44 billion takeover in 2022. Jurors ruled that Musk’s misleading statements about bot accounts impacted shareholder decisions, potentially costing $2.5 billion in damages.

Elon Musk, the world's richest person, has been found liable by a U.S. federal jury for defrauding Twitter shareholders during his 2022 attempt to acquire the social media giant. The jury ruled in favor of shareholder claims that Musk misled them by highlighting the issue of fake and spam accounts, commonly known as bots, to influence Twitter's stock price. This civil trial took place in San Francisco federal court, placing Musk at the center of a high-stakes legal battle.

Though exact damages have not yet been determined, legal representatives for the shareholders estimate losses to total approximately $2.5 billion. Francis Bottini, a lawyer for the plaintiffs, emphasized the responsibility that comes with Musk's immense influence, stating, "Musk's status as the world's richest man is not a free pass." His influence on market movements via social media is currently under scrutiny, with further legal actions potentially in the pipeline.

Musk's legal team has labeled the verdict as a mere "bump in the road" and anticipates a successful appeal. This is not Musk's first confrontation with shareholder accusations; he has previously faced trials over accusations of misleading investors in his other ventures, namely Tesla. Despite previous legal challenges, Musk completed his acquisition of Twitter—now rebranded as X—in October 2022.

(With inputs from agencies.)