A jury has found Elon Musk liable for deliberately misleading investors by driving down Twitter’s stock price in the tumultuous months leading up to his $44 billion acquisition of the social media platform in 2022.
The verdict, handed down this week, found that Musk engaged in conduct that deceived investors — though jurors absolved him of some of the fraud allegations brought against him. The specific damages and next steps in the case were still being determined at the time of reporting.
Background: The Twitter Takeover
Musk’s acquisition of Twitter was one of the most chaotic corporate takeovers in modern business history. He initially agreed to buy the company in April 2022, then spent months attempting to back out of the deal, publicly questioning the platform’s bot and spam account numbers. During that period, Twitter’s stock price swung wildly as markets tried to interpret his public statements and legal filings.
Investors argued that Musk’s public moves — including tweets, statements, and his attempt to exit the deal — were not spontaneous but calculated efforts to artificially suppress the stock price before he was ultimately forced by a Delaware court to complete the purchase.
What It Means
The verdict adds to a growing legal and regulatory cloud around Musk, who simultaneously runs Tesla, SpaceX, xAI, and now serves in a high-profile advisory role within the Trump administration through the Department of Government Efficiency. Critics have long argued that his public platform and business interests create conflicts that invite scrutiny.
Musk has not publicly commented on the verdict. His attorneys are expected to appeal.