Elon Musk misled investors during a critical stage of his 2022 takeover of Twitter, a San Francisco jury has determined.
After two days of deliberation, the panel delivered a unanimous verdict against the billionaire, who was accused by a group of Twitter investors of relying on his public statements when making financial decisions.
During testimony earlier this month, Musk defended himself, saying he never intended to mislead anyone and that the public had simply read too much into his tweets and other remarks.
The jury, however, concluded that some of Musk’s public claims about problems with Twitter’s user metrics and suggestions that he might abandon the $44 billion deal were deliberately misleading.
Lawyers for Musk did not immediately respond to requests for comment, and representatives for the investors, led by small-business owner Brian Belgrave from Oregon, also remained silent.
This is not the first time Musk has faced legal challenges related to his tweets. In 2023, he successfully defended himself against a lawsuit from Tesla shareholders who claimed his social media posts misled them about the car company.
In the latest ruling, the jury found that Musk’s statements between May and October 2022 caused Twitter’s stock price to fall by roughly $8 to $3 per share. The decision means investors in the class could receive thousands of dollars in compensation for their losses.
Monte Mann, a business litigation attorney at Armstrong Teasdale, said the verdict highlights the responsibilities of influential figures. “If you move the market with your words, you own the consequences,” he said.
Musk had publicly tweeted about Twitter’s supposed issues with fake accounts, also known as “bots,” and temporarily claimed the deal was “on hold” before attempting to withdraw entirely. Twitter sued to enforce the agreement, and Musk eventually completed the purchase at the original price in early October 2022. He later rebranded the platform as X.
During the months of uncertainty, investors like Belgrave faced financial losses. Belgrave told the jury he sold thousands of Twitter shares in July 2022, believing Musk would abandon the acquisition based on his public statements. His sale price was below both his original purchase price and the $54.20 per share Musk ultimately paid. “I got screwed,” Belgrave said. “I got cheated.”
Musk’s courtroom demeanor was combative, often refusing to answer yes-or-no questions and arguing that lawyers for the investor class were attempting to mislead the jury. At one point, he admitted, “If this was a trial on whether I've made stupid tweets, I'd say I'm guilty.”
