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Unanimous verdict against Musk in investor lawsuit
A San Francisco federal jury ruled Friday that Elon Musk intentionally misled Twitter investors during his $44 billion acquisition of the platform in 2022, delivering a unanimous verdict after two days of deliberations.
Key findings and financial impact
The jury determined Musk's public statements about Twitter's user metrics and potential deal withdrawal artificially depressed the company's stock price by $3 to $8 per share between May and October 2022. This could result in thousands of dollars in damages for each investor in the class-action suit.
Plaintiffs, led by Oregon small-business owner Brian Belgrave, argued they relied on Musk's statements when trading Twitter shares during the volatile period.
Musk's defense and courtroom tensions
During testimony earlier this month, Musk denied misleading investors, claiming his tweets were misinterpreted. He adopted a combative stance with plaintiff attorneys, refusing to answer questions directly and accusing them of attempting to mislead the jury.
"If this was a trial on whether I've made stupid tweets, I'd say I'm guilty."
Elon Musk, during testimony
Timeline of the disputed takeover
Musk began publicly questioning Twitter's bot accounts in May 2022, tweeting that the deal was "on hold" before signaling an intent to withdraw. Twitter sued to enforce the agreement, and Musk ultimately completed the acquisition in October at the original $54.20 per-share price. The platform was later rebranded as X.
Belgrave testified he sold thousands of shares in July 2022 at a loss, believing Musk would abandon the deal based on his public statements. "I got screwed," he told the jury. "I got cheated."
Legal experts weigh in
Monte Mann, a business litigation attorney at Armstrong Teasdale, called the verdict a warning to high-profile executives.
"If you move the market with your words, you own the consequences."
Monte Mann, trial attorney
Neither Musk's legal team nor the investors' attorneys responded to requests for comment following the verdict.
Precedent and broader implications
While Musk prevailed in a 2023 lawsuit brought by Tesla shareholders over his tweets, Friday's decision marks a rare legal setback tied to his public communications. The case underscores the risks of unregulated statements by influential figures in volatile markets.
