Elon Musk Misled Twitter Investors Ahead Of $44 Billion Acquisition, Jury Finds

A California jury has determined that Elon Musk misled Twitter investors in the lead-up to his $44 billion acquisition of the social media company in 2022. The decision, delivered Friday in San Francisco federal court, follows a closely watched trial centered on Musk’s public comments about the platform’s bot population.

The case focused on whether Musk falsely suggested that Twitter significantly underreported the number of fake and spam accounts. Investors argued that those statements impacted the company’s stock price during a critical period of the acquisition process.

Musk ultimately finalized the purchase in October 2022, later rebranding the platform as X. The lawsuit, Pampena v. Musk, was filed that same month and covers investors who sold Twitter shares between May 13, 2022, and October 4, 2022.

Jury Verdict Highlights Risks Of Market-Moving Statements

“This verdict sends a clear message — if you move the market with your words, you own the consequences,” said Monte Mann, a trial lawyer at Armstrong Teasdale.

“Going forward, this will have a real chilling effect. Executives and dealmakers will need to think carefully about how public statements can be interpreted — not just as disclosure but as part of the negotiation itself.”

The lawsuit alleged that Musk’s public remarks about bot activity—made after he agreed in April 2022 to acquire Twitter—created uncertainty and contributed to stock volatility, SurgeZirc reported.

Shareholders Cite Tweets And Public Criticism In Case

Twitter shareholders pointed to multiple instances where Musk questioned the company’s reported bot figures, including a May 17, 2022, tweet stating his takeover “cannot go forward” without proof that bots accounted for less than 5% of users.

“He trashed the company. Trashed the executives. And tanked the stock,” said Mark Molumphy, the shareholders’ lawyer, during closing arguments.

Musk’s legal team pushed back, arguing that his concerns about bots were genuine and that raising them publicly did not amount to fraud or intent to mislead investors.

Elon Musk’s Broader Legal Battles Continue

Michael Lifrak, representing Musk, maintained that the billionaire acted within his rights by questioning key metrics tied to the deal.

Musk has a track record of fighting shareholder lawsuits rather than settling. He previously prevailed in a 2023 trial involving Tesla, as well as litigation tied to his $139 billion Tesla compensation package.

He is also currently in discussions to resolve a separate lawsuit from the U.S. Securities and Exchange Commission, which alleges he delayed disclosing his initial Twitter stock purchases in 2022.

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“The verdict isn’t just about Musk, it’s about the rules of engagement for modern dealmaking,” Mann said.

The trial began March 2 in San Francisco and concluded with a verdict that could influence how executives communicate during high-stakes acquisitions.

According to Forbes, Musk remains the world’s richest person, with a net worth of $839 billion.

This article was first published on SurgeZirc. SurgeZirc and SurgeZirc SA are part of the SurgeZirc Media global network.