US EditionElon Musk misled Twitter investors ahead of $44 billion acquisition, jury says
A San Francisco jury found Musk liable for misleading investors with tweets during his $44 billion Twitter acquisition, potentially costing him billions in damages, but cleared some fraud claims.
- On Friday, a California jury found Elon Musk misled Twitter shareholders during the runup to his $44 billion acquisition, in a verdict issued after his March 4 federal court appearance.
- After his April 2022 bid, Elon Musk publicly questioned Twitter's bot counts, and the Pampena v. Musk lawsuit was filed in October 2022 after his $54.20 per share purchase.
- Former Twitter shareholders, including retail investors and options traders, said Musk's tweets sent Twitter shares sliding by almost 10% in one session, and some sold below $54.20, while plaintiffs' attorneys said damages could reach up to $2.6 billion.
- The verdict also found Musk's attorneys argued his remarks about bots reflected legitimate concerns and did not amount to securities fraud, despite some allegations being upheld.
- Plaintiffs alleged Elon Musk was driven by Tesla stock declines that risked forcing share sales, and he later renamed Twitter as X, merging it with xAI and SpaceX.
319 Articles
319 Articles
Jury finds Elon Musk misled investors during Twitter purchase
A jury has found Elon Musk liable for misleading investors by deliberately driving down Twitter’s stock price in the tumultuous months leading up to his 2022 acquisition of the social media company for $44 billion. But it absolved him of some fraud allegations, finding that he did not “scheme” to mislead investors.The civil trial in San Francisco centered on a class-action lawsuit filed just before Musk took control of Twitter, which he later re…
Elon Musk found liable for defrauding Twitter investors
A San Francisco jury ruled Friday that Elon Musk defrauded Twitter investors during his chaotic $44 billion acquisition of the platform in 2022 — and the damages could exceed $2.6 billion.As reported on by Courthouse News Service, the case centers on a series of tweets and public statements Musk made in May 2022, when he publicly cast doubt on the deal by claiming spam and bot accounts made up a significant portion of Twitter's user base. Invest…
National Post
Musk misled Twitter investors before 2022 buyout, jury says
Elon Musk defrauded Twitter Inc. investors when he disparaged the company in 2022 in an effort to buy the social media platform for a lower price than his original $44 billion bid, a jury concluded.
According to a jury, Elon Musk deliberately distributes false information to press the price before buying Twitter. There is now a billion-dollar payment in the room. The lawyers of the Tesla boss are already announcing an appeal.
Elon Musk Misled Twitter Investors Ahead of His $44 Billion Takeover in 2022, Jury Finds
Elon Musk artificially drove down the price of Twitter's stock in 2022 with tweets claiming the social-media company had underreported how many fake and spam accounts were on its platform, a federal jury found.
Jurors acquit investors who sued the billionaire for public defamation of the platform – “The jury sent a resounding message that no one is above the law,” said a lawyer for the investors
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