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Jury Finds Elon Musk Liable for Misleading Twitter Investors
A California jury found Elon Musk liable for misleading Twitter investors before his $44 billion acquisition of the company. The verdict, delivered after a three-week trial, holds Musk accountable for tweets that influenced shareholders' decisions.
A jury in California determined that Elon Musk misled Twitter investors leading up to his $44 billion purchase of the social media platform, now known as X. The civil trial, Pampena v. Musk, which began on March 2, was based on a class-action lawsuit filed in October 2022. Jurors considered whether Musk intentionally defrauded shareholders through tweets and podcast comments made in May 2022. Although the jury found Musk liable for misleading investors via two tweets, including one stating the deal was "temporarily on hold", they found he did not "scheme" to defraud investors. The trial examined Musk's claims about the number of bots on Twitter, with Musk alleging a higher number of fake accounts than the 5% disclosed in filings. The nine-person jury reached the verdict after three days of deliberation.
Key Facts
- A jury found Elon Musk liable for misleading Twitter investors before his $44 billion acquisition.
- The lawsuit, Pampena v. Musk, was a class action filed in October 2022.
- The jury determined that Musk misled investors with specific tweets.
- Jurors absolved Musk of allegations that he intentionally schemed to defraud investors.
- Damages could reach as high as $2.6 billion, according to attorneys for the plaintiffs.
- The trial examined Musk's claims regarding the number of bot accounts on Twitter.
- Jurors awarded shareholders between $3 and $8 per share per day.
- Musk's estimated fortune is approximately $814 billion, largely tied to Tesla shares.
Primary Source
Research Sources
- The Independent — Elon Musk found liable for misleading investors during purchase of Twitter
- CNBC — Elon Musk misled Twitter investors ahead of $44 billion acquisition, jury says