Jury Finds Musk Liable In Twitter Fraud Case
A U.S. jury has found Elon Musk liable for misleading Twitter shareholders during his 2022 takeover battle, ruling that some of his public statements about the company and the acquisition process amounted to fraud. The verdict marks a major legal setback linked to Musk’s $44 billion purchase of the social media platform, now known as X.
Jury Finds Elon Musk Liable In Twitter Case
The federal jury in San Francisco concluded that Musk misled Twitter investors through two tweets posted in May 2022, including his statement that the deal was “temporarily on hold.” Jurors found that these remarks affected shareholders during a critical stage of the takeover fight, when Musk was publicly questioning the company’s value and user data.
Fake Account Claims Became Central To Trial
A major focus of the case was Musk’s repeated claim that Twitter had far more fake and spam accounts than the company had officially disclosed. Musk used those allegations as part of his attempt to back out of the takeover agreement. Twitter then sued to enforce the deal, and Musk eventually completed the acquisition on the original terms just before the Delaware trial was due to begin.
Damages Still Pending After Verdict
While the jury found Musk liable on part of the case, it did not conclude that he carried out a broader scheme to defraud investors. It also rejected claims tied to certain podcast remarks, narrowing the scope of the verdict. However, the financial consequences could still be significant, with damages in the class-action case yet to be finalised and expected to run into billions of dollars.
The ruling adds another legal and financial complication to one of the most controversial corporate takeovers in recent years, with Musk now facing the possibility of a substantial payout to affected shareholders.
