By 𝔸bdulrazak Tomiwa

A federal jury in San Francisco has found Elon Musk liable for misleading investors during his 2022 acquisition of Twitter. 

The class-action lawsuit alleged that Musk’s public statements were intentionally designed to manipulate the company’s stock price to his advantage.

The case centered on claims that Musk tried to drive down Twitter’s share price as the market cooled and his Tesla stock declined. Investors argued he used a public campaign of doubt to pressure Twitter into a lower deal price or an exit.

Jurors identified two specific tweets from May 2022 as misleading, including one claiming the deal was “on hold” due to spam account concerns. These posts caused immediate, significant drops in Twitter’s valuation, leading to the liability finding.

While found liable for misleading tweets, Musk was cleared of broader fraud and “scheme” allegations. The jury determined that certain other comments, including those made on a podcast, were protected as opinions rather than factual misrepresentations.

Financial damages are expected to be massive, with awards ranging from $3 to $8 per share for the period the stock was depressed. Total payouts to institutional and individual investors could potentially reach approximately $2.6 billion.

Musk remained defiant during testimony, insisting his concerns about “bots” were legitimate and that Twitter’s leadership had deceived him. He argued that since he ultimately paid the full original price, shareholders received a “windfall.”

Legal experts suggest this verdict sets a major precedent for accountability regarding high-profile social media activity.

Plaintiffs’ attorneys emphasized that the ruling proves even the world’s wealthiest individuals must face consequences for market-moving statements.

Musk’s legal team labeled the decision a “bump in the road” and confirmed plans to appeal the verdict. This follows a previous 2023 legal victory for Musk regarding his 2018 tweets about taking Tesla private