Musk Testifies in Trial Over Alleged Stock Deflation
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SAN FRANCISCO — Elon Musk took the stand Wednesday in a trial, where plaintiffs allege he made false public statements in May 2022 that depressed Twitter's stock before his $44 billion acquisition. The lawsuit, filed in October 2022 in U.S. District Court for the Northern District of California, represents shareholders who sold shares between May 13 and Oct. 4, 2022. Lawyers said Musk's tweets and statements about spam accounts drove down the price; Musk testified that spam prevalence exceeded Twitter's 5% estimate. The court is weighing claims of securities-law violations and investor losses. Based on 6 articles reviewed and supporting research.
More context
Timeline
- 1. April 2022: Musk agreed to acquire Twitter for about $44 billion.
- 2. May 13, 2022: Musk announced the deal was 'temporarily on hold' over spam concerns.
- 3. Mid-May 2022: Musk tweeted the transaction 'cannot go forward' and cited higher fake-account estimates.
- 4. October 2022: Shareholder class-action lawsuit filed covering sales between May 13 and Oct 4, 2022.
- 5. This week: Musk testified in a San Francisco federal court during the shareholder trial.
Why it matters
This trial could affect Twitter's stock value. If you own shares, keep an eye on the outcome. If Musk is found guilty of securities-law violations, it could also impact his other businesses. This includes Tesla and SpaceX.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
