A United States jury has ruled that Elon Musk is liable for misleading investors of Twitter during his $44 billion acquisition of the platform.
The verdict was delivered on Friday after a three-week trial at a federal court in San Francisco. Jurors concluded that Musk made false and misleading statements in tweets posted in May 2022, which influenced market activity and contributed to a decline in Twitter’s share price at a crucial phase of the takeover.
The case stemmed from a class-action lawsuit filed by investor Giuseppe Pampena on behalf of shareholders who sold their stock between mid-May and early October 2022 — a period marked by uncertainty over whether Musk would complete the deal.
According to the jury, Musk violated US securities laws that prohibit deceptive statements capable of affecting stock prices. Lawyers representing the plaintiffs estimated potential damages at about $2.6 billion, exposing the billionaire to a substantial financial penalty if the ruling stands.
A major issue in the trial was Musk’s claim that the deal was “on hold” pending verification of fake or bot accounts on the platform. Plaintiffs argued that the statement was intended to drive down Twitter’s valuation, giving Musk leverage to renegotiate the price or withdraw entirely.
At the time, Musk was also under pressure from declining shares of Tesla, raising concerns about how he would fund the acquisition without selling more stock.
Although Musk initially attempted to back out of the agreement, he eventually completed the purchase in October 2022 after Twitter moved to enforce the deal in court. He later rebranded the platform as X.
Musk’s legal team has rejected the verdict, describing it as a temporary setback and confirming plans to appeal.
Despite the ruling, Musk remains one of the world’s wealthiest individuals, with his fortune largely tied to holdings in Tesla and SpaceX.
