A San Francisco federal jury found Elon Musk liable for misleading investors during his 2022 acquisition of Twitter. The acquisition deal was valued at $44 billion. Former shareholders filed the class-action lawsuit, alleging Musk intentionally suppressed the stock price by making public statements questioning spam and bot accounts to renegotiate or exit the deal.
The jury identified two specific tweets as materially false or misleading. These statements were posted in May 2022. Jurors cleared Musk of allegations involving a broader fraudulent scheme. Plaintiffs' lawyers estimate potential damages could exceed $2 billion and called the verdict a victory for market integrity.