Elon Musk Misled Investors During Twitter Takeover, US Jury Finds

In a recent ruling, a U.S. jury determined that Elon Musk deliberately misled investors by manipulating Twitter’s stock price in the period before his $44bn (£33bn) acquisition of the social media platform. The verdict came after a civil trial in San Francisco, where Musk was cleared of certain fraud charges but found responsible for other misrepresentations.

The lawsuit, filed shortly before Musk took control of Twitter and renamed it X, focused on two statements he made during a podcast in May 2022. Shareholders claimed these remarks influenced their decisions to sell shares, arguing that Musk intentionally downgraded the company’s value. However, his legal team contested this, asserting that his concerns about bot accounts were genuine and not part of a deliberate scheme.

“He trashed the company. Trashed the executives. And tanked the stock,” said Mark Molumphy, the shareholders’ attorney, during closing arguments. This statement emphasized the impact of Musk’s public criticism on market confidence and investor behavior.

Musk’s defense centered on his claim that Twitter had misrepresented the number of fake accounts on its platform, a figure he argued was critical to the deal’s viability. The court presented evidence of a tweet where Musk stated the takeover could not proceed unless the bot percentage fell below 5%. This became a pivotal moment in the case.

While the exact damages remain unspecified, the jury likely concluded Musk would face significant financial liability, potentially in the billions, to compensate affected shareholders. His net worth, currently estimated at $814bn (£610bn), is heavily tied to Tesla shares, though the ruling may prompt reassessments of his financial strategies.

Additional Context and Related Developments

Following his attempt to withdraw from the purchase, Twitter initiated legal proceedings to enforce the original agreement. Musk eventually agreed to finalize the acquisition in October 2022, despite ongoing disputes. Separately, he is negotiating a settlement with the U.S. Securities and Exchange Commission over accusations of delayed disclosure of his stock purchases.

Meanwhile, other news highlights include Trump’s surge in wealth as a new billionaire list was released, and discussions around Grok’s commentary on football tragedies being labeled “sickening” by government officials. The UK also announced a connection to Starlink satellites, marking a technological partnership with Elon Musk’s space ventures.