Jury Rules Musk Misled Twitter Investors, Faces Damages
A California jury has ruled that Elon Musk misled Twitter investors, potentially costing him billions in damages. The case centers on his public statements before the acquisition.
A jury in California ruled on Friday that Elon Musk misled investors in Twitter through public statements that significantly lowered the company's stock price prior to his acquisition of the platform.
This case was a class action lawsuit, which means Musk may be required to pay damages to a wide array of investors, with potential payouts amounting to billions of dollars.
Leading up to Musk's purchase of Twitter, he made several remarks both on the platform and during a podcast appearance, primarily concerning the alleged prevalence of bot accounts. These comments raised concerns about the viability of the deal and resulted in a decline in Twitter's stock price, prompting some investors to sell their shares at a loss.
A group of these investors filed a class action suit, alleging that Musk's statements constituted fraud and were made with intentional deceit as part of a broader scheme. However, the jury dismissed the notion of a grand scheme, ultimately holding Musk liable for his tweets.