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 $44 billion purchase of the company. The jury found that Musk's tweets depressed the price of company stock, causing investors to sell shares at a lower price.
A jury in California determined that Elon Musk misled investors in Twitter through public statements that lowered the company's stock price before Musk's purchase of the service, CNBC reports. Musk's statements, largely focused on the prevalence of bot accounts, raised fears that the deal would not proceed. Some investors then started a class action suit, claiming that the statements defrauded them. The New York Times reports that Musk testified that he did not believe his posts would spook markets, but conceded that he made "stupid tweets". While the jury rejected arguments about a larger scheme to defraud shareholders, they found Musk liable for the tweets. Musk's attorneys are expected to file an appeal, according to CNBC.
Key Facts
- A California jury found Elon Musk misled Twitter investors with public statements.
- The suit was related to Musk's statements prior to his $44 billion purchase of Twitter.
- Musk's tweets about spam and bots caused some investors to sell shares for less than the final price.
- The jury cited two of Musk’s tweets, from May 13th and May 27th, 2022, as materially false or misleading.
- Damages have yet to be determined, but could reach as high as $2.6 billion.
- Musk testified that he didn't believe his posts would spook markets.
- 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