A US federal jury on Friday found Elon Musk liable for defrauding Twitter shareholders, ruling that he sought to push down the company’s stock price during his $44 billion takeover bid in 2022 in order to renegotiate the deal or potentially withdraw from it.
The verdict, delivered in federal court in San Francisco, followed a closely watched civil trial in which Musk was accused of misleading investors through social media posts. He had claimed that Twitter significantly underreported the number of fake and spam accounts, commonly referred to as bots, on its platform.
Damages have not yet been determined, though shareholders’ lawyer Francis Bottini estimated they could reach as much as $2.5 billion. He said Musk’s influence over markets carries responsibility, arguing that public statements capable of moving share prices can harm investors.
Musk’s legal team at Quinn Emanuel Urquhart & Sullivan downplayed the outcome, describing it as a temporary setback and expressing confidence that the decision would be overturned on appeal.
The trial began on March 2, with jurors starting deliberations earlier this week. Musk has previously fought shareholder lawsuits in court rather than settling, including disputes involving Tesla, where he ultimately prevailed.
