A U.S. jury has found Elon Musk, world’s richest person, liable for losses suffered by Twitter investors after he made posts that influenced the company’s share price during his $44 billion acquisition of the platform.
The ruling was delivered on Friday by a jury at the U.S. District Court for the Northern District of California.
In its decision, the jury held that Musk was responsible for certain statements, particularly posts suggesting the deal was “temporarily on hold”, which contributed to investor losses. However, it stopped short of concluding that he deliberately set out to harm Twitter’s stock price.
What they are saying
The jury’s ruling established that Musk’s public statements had a material impact on investors, even if the intent to manipulate the market was not fully proven.
Lawyers representing Twitter shareholders argued that Musk’s actions were calculated to pressure the company and drive down its valuation during negotiations.
- “Elon Musk cheated investors to save himself billions of dollars,” said Aaron Arnzen, a lawyer for the investors, adding that Musk used his influence to “trash Twitter with his personal megaphone — his Twitter account — punish the stock and try to renegotiate.”
Another lawyer for the shareholders, Mark Molumphy, said the verdict reinforces accountability regardless of status.
- “The jury’s verdict sends a strong message that just because you’re a rich and powerful person, you still have to obey the law and no man is above the law,” he said.
Although the details of the damages will be determined in the coming weeks, Twitter lawyers claim Musk might pay $2.5 billion to Twitter’s former shareholders.
More insights
In a written statement, Musk’s lawyers called the jury’s decision “a bump in the road,” adding that they “look forward to vindication on appeal.”
Musk first announced his intention to acquire Twitter in April 2022, citing plans to tackle spam and fake accounts on the platform.
- However, weeks into the deal, he began raising concerns about the number of bots on Twitter, claiming the company had underreported fake accounts. He later attempted to back out of the agreement entirely, prompting Twitter to sue him to enforce the acquisition.
During the trial, Musk maintained that his concerns were genuine and not intended to manipulate the market.
- “If this was a trial about whether I made stupid tweets, I would say I’m guilty,” Musk said, while insisting he did not believe his posts would significantly move markets.
Despite the dispute, the acquisition was eventually completed in October 2022 at the original $44 billion price. Musk then took the company private, and subsequently renamed it X.
What you should know
Elon Musk is currently the world’s richest man, with a net worth estimated at over $852 billion, and is widely known for his influential and often controversial social media posts.
In 2023, he was cleared by a jury in a separate case involving allegations that his tweets misled investors during a failed 2018 attempt to take Tesla private.
Beyond the Twitter case, Musk has frequently faced scrutiny over his ability to influence financial markets through social media, particularly in the cryptocurrency space.
- In 2021, Nairametrics reported that Musk pushed Dogecoin up by about 20% after tweeting that Tesla would accept the meme coin.
- Similarly, in November 2024, Dogecoin surged by around 5% following a Musk tweet hinting that the cryptocurrency could play a role in the anticipated payment system on X.
These episodes have continued to fuel debate about the power of high-profile individuals to move markets with a single post.
