Elon Musk misled shareholders in effort to drive down Twitter stock price, jury finds

Legal Proceedings: Elon Musk's Twitter Acquisition

A jury has determined that Elon Musk is liable for misleading investors during the acquisition of Twitter, now rebranded as X, in 2022. The civil trial, held in San Francisco, addressed a class-action lawsuit focusing on statements Musk made in May 2022.

The jury, after nearly four days of deliberation, concluded that Musk's tweets, including one indicating that the Twitter acquisition was "temporarily on hold," misled investors. However, they did not find Musk guilty of a deliberate scheme to defraud investors.

The jury awarded damages to shareholders, ranging from approximately $3 to $8 per stock per day. This translates to about $2.1 billion in stock and an additional $500 million in options, according to the plaintiffs' legal representatives.

Musk's legal team has expressed intentions to appeal the verdict, emphasizing recent legal victories in other cases. They view the jury's mixed decision as a temporary setback.

The trial scrutinized Musk's claims concerning the number of fake and spam accounts on Twitter. Musk argued that Twitter's reported figures were inaccurate, which influenced his initial hesitation to complete the purchase.

Subsequently, Twitter sought legal action to enforce the original acquisition terms. Musk eventually proceeded with the purchase at the agreed price, resulting in significant financial benefits for Twitter shareholders.

The lawsuit alleged that Musk's tweets were strategically intended to depress Twitter's stock price, allowing him potential renegotiation or exit from the deal. The jury's decision reflects the complexities of financial communication in the digital age.

This case is part of a broader pattern where Musk has faced legal challenges related to his social media activity and its impact on market dynamics.

Based on reporting by Africanews.