A US jury has found Tesla CEO Elon Musk misled investors during a critical phase of his $44 billion Twitter takeover in 2022, holding his public statements responsible for influencing the company’s stock price.
The verdict follows days of deliberation in a San Francisco federal court, where investors argued that Musk’s tweets and comments created confusion around the deal and impacted their financial decisions.
Jury Finds Musk’s Statements Misleading in $44 Billion Twitter Deal
While testifying earlier this month, Musk insisted he had not misled investors, saying his tweets and public remarks were misunderstood. However, the jury ruled that some of his statements, especially those concerning Twitter’s user metrics and hints of backing out of the $44 billion deal, were intentionally misleading.
Lawyers representing Musk and the investors, led by Oregon-based small-business owner Brian Belgrave, declined to comment. Notably, this is not Musk’s first legal controversy over his tweets, although he had previously won a 2023 case filed by Tesla shareholders over similar allegations.
Stock Price May Impact May Lead to Investor Payouts
In its Friday verdict, the San Francisco jury held that Musk’s public statements drove Twitter’s stock price down by roughly $8 to $3 per share between May and October 2022.
As a result, investors involved in the case could be entitled to thousands of dollars in compensation for their losses.
Commenting on the ruling, trial attorney Monte Mann said the decision “sends a clear message,” adding, “If you move the market with your words, you own the consequences.”
What Was $44 Billion Twitter Deal?
Starting around May 2022, Musk tweeted about alleged issues with fake or “bot
Accounts on Twitter, at one point, said the deal was “on hold” before later indicating he wanted to exit altogether.
Twitter subsequently took legal action to compel him to honour the agreement, and by early October, Musk completed the acquisition at the originally agreed price, later rebranding the platform as X.
The uncertainty during those months proved costly for investors like Brian Belgrave, who told the jury he sold thousands of shares in July 2022, as he believed the deal would fall through due to Musk’s public statement.
He ended up selling at a loss below his purchase price and far less than the $54.2 per share Musk ultimately paid. “I got screwed… I got cheated,” Belgrave said.
During his testimony, Musk also clashed with lawyers and at times refused to give direct “yes” or “no” answers, accusing them of attempting to mislead the jury.
Manisha Chauhan is a passionate journalist with 3 years of experience in the media industry, covering everything from trending entertainment buzz and celebrity spotlights to thought-provoking book reviews and practical health tips. Known for blending fresh perspectives with reader-friendly writing, she creates content that informs, entertains, and inspires. When she’s not chasing the next viral story, you’ll find her diving into a good book or exploring new wellness trends.
