A jury has determined that Elon Musk misled the public during a critical phase of his 2022 Twitter acquisition. After two days of deliberation, this unanimous verdict emerged from a San Francisco federal court, where a group of Twitter investors argued they relied on Musk’s statements.
During his testimony, Musk maintained that he did not deceive investors and that his public comments and tweets were often misinterpreted. However, the jury concluded that certain claims regarding Twitter’s user metrics and his potential withdrawal from the $44 billion acquisition were intentionally misleading.
Musk’s legal team did not respond to requests for comment, nor did the attorneys representing the investors, led by Oregon small-business owner Brian Belgrave.
This incident is not Musk’s first encounter with legal issues stemming from his tweets. He previously overcame a 2023 lawsuit from Tesla shareholders who alleged he had misled them with his posts about the car manufacturer.
In their verdict, the jury found that Musk had artificially reduced Twitter’s stock price by approximately $8 to $3 per share between May and October 2022 due to his public statements. This ruling suggests that each investor in the class may be eligible to receive significant damages for their losses.
Monte Mann, a trial attorney specializing in business litigation at Armstrong Teasdale, remarked that the verdict against Musk “sends a clear message.” He emphasized, “If you move the market with your words, you own the consequences.”
Beginning in May 2022, Musk tweeted about alleged issues with fake accounts, stating that the acquisition deal was “on hold” before ultimately expressing a desire to withdraw completely. Twitter subsequently took legal action to compel Musk to honor the agreement, and in early October, he completed the acquisition at the originally agreed price. The following year, he rebranded the platform as X.
These months were financially detrimental for Twitter investors like Belgrave, who traded shares during that turbulent period. Belgrave testified that he sold thousands of Twitter shares in July 2022, convinced that Musk would not proceed with the acquisition based on Musk’s public communications. He sold the shares for less than he had originally paid, and significantly below the $54.20 per share Musk ultimately paid.
“I got screwed,” Belgrave expressed. “I got cheated.”
During his testimony, Musk displayed a combative demeanor toward the lawyers representing the investor class. He often refused to provide straightforward “yes” or “no” answers, claiming that the attorneys were attempting to mislead the jury. At one point, he admitted, “If this was a trial on whether I’ve made stupid tweets, I’d say I’m guilty.”
