A US federal jury has found that tech billionaire Elon Musk misled shareholders of Twitter during his $44 billion acquisition of the social media company, a ruling that could cost him billions of dollars in damages.
The verdict, delivered by a jury in California after a three-week trial, concluded that Musk made false statements in tweets posted in May 2022 that contributed to a drop in Twitter’s share price as he moved to acquire the platform. However, jurors stopped short of finding that he deliberately orchestrated a broader scheme to defraud investors.
The lawsuit was filed by investor Giuseppe Pampena on behalf of shareholders who sold their Twitter stock between mid-May and early October 2022. The court found that Musk violated securities regulations prohibiting misleading statements capable of influencing stock prices.
Jurors awarded damages estimated at between $3 and $8 per share per day, with plaintiffs’ lawyers putting the total compensation at about $2.6 billion, including stock and options.
Musk’s legal team described the ruling as a “setback” and confirmed plans to appeal the decision.
The case centred on Musk’s public comments questioning the number of fake or “bot” accounts on Twitter, which plaintiffs argued were intended to pressure the company into renegotiating the purchase price or abandoning the deal entirely.
Musk eventually completed the acquisition in October 2022 and later rebranded Twitter as X.
Legal experts say the ruling underscores growing scrutiny over the market influence of high-profile executives, particularly on social media.
“This verdict sends a strong message that even the most powerful individuals must adhere to securities laws,” said Mark Molumphy, a lawyer representing the plaintiffs.
Despite the ruling, Musk—whose wealth is largely tied to companies such as Tesla and SpaceX—has previously prevailed in similar legal battles, reinforcing his reputation for overcoming high-stakes lawsuits.
The final damages to be paid will be determined in subsequent proceedings, pending the outcome of Musk’s appeal.
