A federal jury in San Francisco has found Elon Musk liable for misleading Twitter investors during his 2022 acquisition attempt of the social media company. The unanimous verdict came after two days of deliberations in a lawsuit brought by a group of Twitter investors who argued they relied on Musk's public statements when making investment decisions.
The case centered on tweets Musk made between May and October 2022, during which he publicly questioned Twitter's user metrics, particularly the prevalence of fake accounts or 'bots,' and announced the $44 billion acquisition deal was 'on hold' before saying he wanted to exit the transaction entirely.
What the Right Is Saying
Conservatives and free speech advocates have expressed concern about the implications of holding public figures liable for social media statements. Some Republican commentators argue the lawsuit represents government overreach and could have a chilling effect on how business leaders communicate publicly.
Musk's legal team argued during the trial that the entrepreneur did not intend to mislead investors and that people 'read too much' into his tweets. During testimony, Musk was combative with plaintiff's attorneys, repeatedly refusing to answer questions with simple yes or no responses.
While the jury found against Musk in this case, supporters note he successfully defeated a 2023 lawsuit brought by Tesla shareholders who claimed he misled them with posts about the electric vehicle company. Some conservative commentators have suggested the verdict reflects hostility toward Musk's acquisition of Twitter, now known as X, and his subsequent content moderation decisions.
What the Left Is Saying
Progressive critics and consumer advocates have hailed the verdict as an important accountability moment for wealthy tech executives. Lawyers representing the investor class, led by attorney Brian Belgrave, argued that Musk's public statements artificially depressed Twitter's stock price, causing financial harm to shareholders who sold their shares based on his comments.
Trial attorney Monte Mann of Armstrong Teasdale, who was not involved in the case, said the verdict 'sends a clear message' about corporate responsibility. 'If you move the market with your words, you own the consequences,' Mann stated.
Democrats and labor advocates have also pointed to the case as evidence of the need for stronger oversight of tech industry leaders. Representative Adam Smith, a Democrat from Washington, has previously called for enhanced securities law enforcement regarding social media executives' public statements.
What the Numbers Show
The jury found that Musk's public statements artificially lowered Twitter's stock price by a range of roughly $8 per share to $3 per share during the period from May to October 2022. Twitter's stock traded significantly below the $54.20 per share price Musk eventually paid when he completed the acquisition in October 2022.
Brian Belgrave, a small-business owner from Oregon who served as the lead plaintiff, told the jury he sold thousands of Twitter shares in July 2022 after believing Musk would not complete the acquisition due to his public posts. Belgrave sold at a loss compared to both his purchase price and the eventual acquisition price.
The verdict means each investor in the class action could be entitled to thousands of dollars in damages, though the exact amount will be determined in后续 proceedings. This marks one of the few times a jury has found a major tech CEO liable for statements made on social media.
The Bottom Line
The verdict represents a significant legal precedent holding tech executives accountable for public statements that move markets. While Musk has faced legal challenges over his tweets before, this is the first time a jury has found him liable for misleading investors during a major corporate transaction.
The case could influence how company executives communicate publicly about pending deals and potential problems with target companies. Lawyers for the investors did not respond to requests for comment, nor did Musk's legal team.
Musk completed the Twitter acquisition in October 2022 and subsequently renamed the platform X. He has not indicated whether he plans to appeal the verdict. The damages phase of the trial has not yet been scheduled.