News
Elon Musk Liable in Twitter Case, Faces Billions in Damages
A U.S. federal jury determined Elon Musk misled Twitter shareholders, causing the share price to drop amid his US$44 billion acquisition deal. Musk now faces billions in damages, according to juror calculations, from the class action securities lawsuit.
A California jury found that Elon Musk made false statements in a pair of May 2022 tweets that led to a drop in Twitter's stock price. The suit was filed by investor Giuseppe Pampena on behalf of shareholders who sold shares between mid-May and early October 2022. The civil complaint alleged that Musk drove down Twitter's stock price to gain leverage or exit the deal, causing losses to shareholders. Musk's lawyers have said that he will appeal the decision, calling it a setback. Musk testified in person during the three-week trial held in San Francisco. Musk acquired Twitter in late October 2022 and later renamed it X.
Key Facts
- Elon Musk was found liable for misleading Twitter shareholders.
- The lawsuit stemmed from Musk's tweets in May 2022 that impacted Twitter's stock price.
- The jury agreed that Musk violated securities rules against false statements that sink stock prices.
- Damages are estimated at about US$2, according to an attorney for the plaintiffs.
- The lawsuit was filed on behalf of investors who sold Twitter shares between mid-May and early October 2022.
- Musk claimed the Twitter acquisition was on hold pending proof of the number of bot accounts.
- Musk's legal team plans to appeal the verdict.
Primary Source
Research Sources
- news.rthk.hk — X puts Musk on spot for billions in lost Twitter case - RTHK