Elon Musk Twitter deal case: Jury says investors were misled in 2022 to lower acquisition price; lawyers to appeal

Elon Musk

• US jury finds Musk misled investors during Twitter buyout attempt
• Statements about deal "on hold" affected Twitter's stock price
• Damages could reach $2.6 billion; Musk plans to appeal verdict

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In the Elon Musk Twitter buyout case, a US jury has ruled that Musk misled investors during his attempt to acquire the platform in 2022, contributing to fluctuations in the company’s share price during the deal period.

The case was heard in a federal court in San Francisco, where an eight-member jury examined Musk’s public statements, including posts made on social media. Jurors concluded that some of these statements created a misleading impression for investors.

One of the key points in the case was Musk’s claim that the Twitter deal was “temporarily on hold” due to concerns around spam and fake accounts. According to the jury, such statements influenced market sentiment and contributed to a drop in Twitter’s stock price at the time.

Investors argued that these actions were aimed at lowering the company’s valuation, allowing Musk to renegotiate the terms of the acquisition.

Damages yet to be decided

While the jury has ruled on the issue of misleading statements, the court has not yet determined the financial penalty. The final amount will be decided after investors submit their claims.

Legal representatives for the investors indicated that damages in the case could reach up to $2.6 billion, depending on how losses are calculated.

Musk’s response and appeal plan

Musk’s legal team has said it will challenge the verdict. In a statement, his lawyers described the outcome as a “bump in the road” and said they expect to secure a favourable outcome during the appeal process.

They also maintained that there was no broader fraud scheme, signalling that the legal battle is likely to continue in higher courts.

The lawsuit stems from Musk’s $44 billion acquisition of Twitter in 2022. During the deal process, Musk repeatedly raised concerns about the number of fake accounts on the platform and questioned the accuracy of the company’s disclosures.

During the trial, Musk stated that he believed Twitter executives had misrepresented key metrics. He also acknowledged that at least one of his tweets related to the deal may not have been his “wisest” decision.

The case adds to a series of legal challenges tied to Musk’s public statements and business dealings, particularly those that have had a direct impact on financial markets.