Jury Rules Musk Misled Shareholders During Twitter Acquisition
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San Francisco: A federal jury on Friday found Elon Musk liable for misleading Twitter shareholders by making two false or misleading statements in May 2022 about bot counts and pausing his $44 billion takeover, after a civil trial that began on March 2 and included in‑person testimony from Musk.
The verdict holds Musk liable for specific statements but rejects a claim of an overarching fraud scheme; plaintiffs' counsel estimates damages near $2.5 billion, Musk's lawyers called the decision a 'bump in the road' and said they will appeal, leaving final financial outcomes pending further proceedings.
More context
Timeline
- 1. April 2022: Musk agrees to acquire Twitter for $44 billion.
- 2. May 2022: Musk tweets purchase is 'temporarily on hold' and raises bot count concerns.
- 3. Mid‑May to early October 2022: Plaintiffs sold shares and later filed a class‑action suit.
- 4. Late October 2022: Musk completed the purchase and later renamed Twitter to X.
- 5. March (trial): Civil trial began March 2; jurors deliberated and returned a verdict finding liability for two statements.
Why it matters
This verdict could impact Twitter's future and its users. If you're a Twitter user, watch for potential changes. If you're an investor, keep an eye on the market. This could affect Twitter's stock price.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
