A federal jury in the United States has found billionaire entrepreneur Elon Musk liable for misleading shareholders of the social media company formerly known as Twitter during his controversial $44 billion acquisition deal.
The verdict was delivered on Friday in a federal court in San Francisco after a three-week trial that examined Musk’s public statements about the deal. Jurors concluded that two tweets posted by Musk in May 2022 contained false or misleading information that contributed to a sharp drop in Twitter’s share price.
The lawsuit, filed by investor Giuseppe Pampena on behalf of shareholders, argued that Musk’s statements caused financial losses for investors who sold their Twitter shares between mid-May and early October 2022.
According to the jury’s findings, Musk violated U.S. securities regulations that prohibit false or misleading statements capable of influencing stock prices. Lawyers representing the plaintiffs estimated that the damages arising from the case could reach about $2.6 billion.
Shortly after the verdict was announced, Musk’s legal team described the decision as a “setback” and confirmed that the tech billionaire intends to appeal the ruling.
The case stems from Musk’s highly publicized attempt to acquire Twitter in 2022. During the negotiation process, the billionaire had tweeted that the deal was “temporarily on hold” while questions were raised about the number of fake or automated accounts on the platform. Critics argued that the statement was part of a strategy to pressure the company into renegotiating the purchase price or allowing Musk to withdraw from the agreement.
Despite the dispute, Musk eventually completed the acquisition in October 2022 and later rebranded the platform as X Corp..
Legal analysts say the verdict represents a rare courtroom setback for Musk, who has often prevailed in high-profile lawsuits involving his business activities, including previous cases linked to Tesla.
While the final financial penalties are yet to be determined, the ruling could potentially cost Musk billions of dollars if the damages sought by investors are upheld.
Observers note that the case highlights the growing legal scrutiny surrounding statements made by influential corporate executives on social media, especially when such statements have the potential to influence global financial markets.
