elon musk was found to have been misleading in his public statements during a crucial period of his 2022 Twitter takeover, a San Francisco federal jury decided after two days of deliberations. Investors sued, arguing they relied on his comments and lost money as Twitter shares fell amid his public claims about bots and suggestions he might abandon the $44 billion deal. The unanimous verdict concluded specific statements about user metrics and the acquisition were intentionally misleading and could produce significant damages for the investor class.
Elon Musk’s statements and the jury’s findings
The jury concluded that certain public claims about problems in Twitter’s user metrics and suggestions that the deal might be off were intentionally misleading. It found those statements artificially lowered Twitter’s stock by roughly $8 per share to $3 per share between May and October 2022, a span when elon musk publicly questioned the platform’s bot counts and at one point said the deal was “on hold. ” That pricing effect, the verdict held, may entitle members of the investor class to thousands of dollars each in damages because the purchase ultimately closed at $54. 20 per share.
Immediate reactions and plaintiff testimony
Monte Mann, a trial attorney focused on business litigation at Armstrong Teasdale, said, “If you move the market with your words, you own the consequences. ” Brian Belgrave, a small-business owner from Oregon who led the investor group, told the jury he sold thousands of Twitter shares in July 2022 believing Musk would not complete the purchase; “I got screwed, ” and “I got cheated, ” Belgrave said. Mark Molumphy, the shareholders’ lawyer, said Musk’s public attacks on the company and executives damaged shareholder value: “He trashed the company. Trashed the executives. And tanked the stock. “
Legal background and immediate fallout
Lawyers for Musk did not respond to a request for comment. Nor did lawyers for the investors led by Brian Belgrave. The investors’ suit argued they had relied on Musk’s public statements; Musk had testified that he did not mislead investors and that people read too much into his public comments and tweets, at times refusing simple yes-or-no answers on the stand. The case follows earlier litigation in which Musk faced but defeated a 2023 lawsuit brought by Tesla shareholders over his posts, and it sits alongside other legal matters in which Musk is engaged; he has been in talks to settle a U. S. Securities and Exchange Commission lawsuit concerning disclosure timing during the same acquisition period.
What happens next for investors and the case
The verdict sets a clear path for damages calculations and potential payouts to the investor class, which could reach thousands of dollars per person based on the jury’s finding about share-price impact. The legal teams now must move to quantify losses and resolve remedies in federal court in San Francisco. Observers said the decision will force executives and dealmakers to weigh how public statements can affect markets and negotiations. The jury’s finding closes a chapter on the immediate dispute over the takeover statements, but appeals and further proceedings over damages and enforcement are expected as the parties press forward while the broader consequences of the verdict unfold for markets and corporate speech.
Elon Musk will face the next legal steps arising from the verdict and any subsequent proceedings tied to investor damages and related regulatory matters.
