A US jury has found Elon Musk liable for misleading investors during his 2022 takeover of Twitter. The decision came after a civil trial in San Francisco that examined whether Musk’s public statements affected the company’s stock price.
The case focused on two tweets posted by Musk in May 2022, including one where he said the deal to buy Twitter was “temporarily on hold.” Investors argued that these statements created uncertainty and pushed the share price down, causing financial losses. The jury agreed that Musk’s tweets misled investors. However, it did not find evidence that he deliberately planned a fraud scheme.
The lawsuit was filed by shareholders shortly before Musk completed the $44 billion acquisition of Twitter, which he later rebranded as X. During the trial, jurors reviewed whether Musk’s comments on social media and in interviews influenced investors to sell their shares at lower prices.
After nearly three weeks of hearings and four days of deliberation, the jury ruled that Musk was responsible for damages linked to the misleading tweets. Shareholders were awarded compensation estimated to total around $2.1 billion, depending on individual losses.
Musk defended himself by claiming that Twitter had underreported the number of fake or spam accounts on its platform. He argued that his statements reflected genuine concerns about the company’s data. Despite this, the jury concluded that at least some of his remarks had a negative impact on investors.
The verdict is seen as significant for financial markets. Legal experts say it sends a clear message that even powerful business leaders must follow market rules and ensure their public statements are accurate.
While Musk avoided the most serious fraud charges, the ruling highlights the risks of using social media to share sensitive business updates. The case also raises questions about accountability in high-profile corporate deals and how investor trust can be affected by public communication.
