Technology
Jury Finds Elon Musk Misled Twitter Investors with Tweets
A California jury determined Elon Musk misled Twitter investors with public statements prior to his purchase of the company. The jury found that Musk's tweets depressed the price of Twitter's stock, causing investors to sell shares at a loss.
A jury in California found Elon Musk liable for misleading investors in Twitter through public statements made before his $44 billion (USD) purchase of the company in 2022. The class action lawsuit centred around statements made on Twitter and in a podcast appearance, largely concerning the prevalence of bot accounts on the platform. These statements raised concerns the deal would not proceed, which in turn depressed Twitter's share price. Investors then claimed Musk's statements defrauded them, alleging the tweets were part of a larger scheme. While the jury rejected arguments about a larger scheme, they found Musk liable for the tweets. Musk testified that he did not believe his posts would spook markets, but conceded, “If this was a trial about whether I made stupid tweets, I would say I’m guilty."
Key Facts
- A jury found Elon Musk misled Twitter investors with tweets before his $44 billion deal to buy the company.
- The jury determined that Musk's tweets depressed the price of Twitter's stock.
- The lawsuit was launched by investors who sold shares at a depressed price during this period.
- The jury cited two of Musk’s tweets, from May 13th and May 27th, 2022, as materially false or misleading.
- Musk's tweets concerned the prevalence of bot accounts on the platform.
- Damages have yet to be determined, but could reach as high as $2.6 billion (USD), according to the plaintiffs' attorneys.
- Musk's attorneys are expected to file an appeal.
Primary Source
Research Sources
- Ars Technica — Jury finds Musk owes damages to Twitter investors for his tweets
- The Verge — Jury finds Elon Musk’s ‘stupid tweets’ caused Twitter investors’ losses