A U.S. federal jury has found that Elon Musk misled investors during his high-profile acquisition of Twitter.
The verdict follows a class-action lawsuit filed by Twitter shareholders, who accused Musk of making misleading public statements in 2022 that affected the company’s stock price and caused financial losses.
Jurors concluded that specific statements Musk made during the acquisition process were false or misleading. Central to the case were his public comments in May 2022, including a widely circulated post indicating that the Twitter deal was “temporarily on hold.”
The jury determined that such statements created uncertainty in the market and contributed to fluctuations in Twitter’s share price at the time. Investors argued that the remarks influenced trading decisions, with some shareholders selling stock at lower prices amid confusion over the deal’s status.
The lawsuit, brought on behalf of Twitter investors, claimed that Musk’s actions resulted in financial harm. According to court findings, the timing and nature of his statements played a role in shaping market reactions during a critical phase of the acquisition.
By signaling doubt about the transaction while continuing negotiations behind the scenes, Musk’s communications created what plaintiffs described as a misleading picture of the deal’s progress.
The jury agreed that these actions affected investor confidence and contributed to measurable losses.
While the jury found Musk liable for misleading investors on specific statements, it did not conclude that he engaged in a broader scheme to defraud shareholders.
Some of Musk’s other remarks, including statements made in interviews and podcasts, were not considered misleading in the legal sense. The court distinguished between opinion-based commentary and statements that could materially influence investor decisions.
Between early 2022 and the completion of the deal, Elon Musk gradually built a large stake in Twitter before publicly disclosing it, later becoming its largest shareholder and launching a $44 billion offer to take the company private. After Twitter accepted the offer, Musk’s public comments—especially his claims about spam and fake accounts—created uncertainty in the market, including a controversial tweet stating the deal was “temporarily on hold,” which contributed to stock volatility and investor confusion.
As tensions escalated, Musk attempted to withdraw from the agreement, leading Twitter to sue him to enforce the purchase. During the legal battle, both sides exchanged accusations over disclosure, valuation, and platform data, while the court case put pressure on Musk as the trial approached. Ultimately, he reversed course and completed the acquisition in October 2022, taking Twitter private and later rebranding it as X Corp, with the entire negotiation period later becoming central to investor claims of misleading market behavior.
Between early 2022 and the completion of the deal, Elon Musk gradually built a large stake in Twitter before publicly disclosing it, later becoming its largest shareholder and launching a $44 billion offer to take the company private.
After Twitter accepted the offer, Musk’s public comments, especially his claims about spam and fake accounts created uncertainty in the market, including a controversial tweet stating the deal was “temporarily on hold,” which contributed to stock volatility and investor confusion.
As tensions escalated, Musk attempted to withdraw from the agreement, leading Twitter to sue him to enforce the purchase. During the legal battle, both sides exchanged accusations over disclosure, valuation, and platform data, while the court case put pressure on Musk as the trial approached.
Ultimately, he reversed course and completed the acquisition in October 2022, taking Twitter private and later rebranding it as X Corp, with the entire negotiation period later becoming central to investor claims of misleading market behavior.
Musk has denied wrongdoing throughout the legal process. His legal team has argued that his statements reflected genuine concerns about the platform and were made in good faith during a complex transaction.
