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Jury Finds Elon Musk Misled Twitter Investors Before $44 Billion Acquisition
A California jury found Elon Musk liable for misleading Twitter shareholders before his $44 billion acquisition of the company. The class action lawsuit alleged that Musk intentionally defrauded investors with statements made in May 2022 regarding the deal.
A jury determined that Elon Musk misled Twitter investors ahead of his $44 billion acquisition of the social media platform, according to a verdict issued Friday. The civil trial, held in San Francisco, centred on a class-action lawsuit filed before Musk took control of Twitter, which he later renamed X. The lawsuit, Pampena v. Musk, was filed in October 2022, after Musk purchased Twitter for $54.20 a share. Jurors considered whether two tweets and comments Musk made on a podcast in May 2022 intentionally defrauded Twitter shareholders. Attorneys for the Twitter investors told CNBC that the case exemplified actions that cannot be done to the average investor.
Key Facts
- The jury found Musk liable for misleading investors with two tweets, including one stating the Twitter deal was "temporarily on hold.".
- The jury absolved him of scheming to defraud investors.
- The lawsuit was filed after Musk bid to buy Twitter in April 2022.
- Musk's sentiment soured as he cast doubt on the number of bots, spam, and fake accounts on the platform.
- Total damages could reach up to $2.6 billion, according to the plaintiffs' attorneys.
- The nine-person jury reached the verdict after three days of deliberation.
- Musk later renamed Twitter to X, merging it with xAI and SpaceX.
Primary Source
Research Sources
- CNBC — Elon Musk misled Twitter investors ahead of $44 billion acquisition, jury says
- The Independent — Elon Musk found liable for misleading investors during purchase of Twitter