A California jury has concluded that Elon Musk misled investors during his high-profile USD $44 billion acquisition of Twitter in 2022, exposing the billionaire to potential damages of up to USD $2.6 billion.
The class-action case centred on Musk’s public statements at the time, including tweets suggesting the takeover was “temporarily on hold,” which triggered a sharp drop in Twitter’s share price. Jurors found that these posts influenced investors who sold stock at reduced values, but stopped short of determining that Musk deliberately orchestrated a scheme to deceive, also clearing his comments made during a podcast.
Lawyers representing shareholders hailed the verdict as a significant win for market accountability, arguing it reinforces that even the most powerful figures must adhere to securities laws.
Musk’s legal team pushed back, characterising the outcome as mixed and signalling plans to appeal the decision. The Tesla and SpaceX chief has yet to publicly respond. The ruling adds another chapter to Musk’s legal history, following a separate 2023 case in which he was cleared of misleading investors over claims he had secured funding to take Tesla private.
This wouldnt happen to a joo.