Elon Musk Found to Mislead Investors in Twitter Takeover
A U.S. jury concluded that Elon Musk intentionally manipulated Twitter’s stock price in the months prior to his $44 billion acquisition of the social media platform. The decision came from a civil trial in San Francisco, where Musk faced accusations of deceiving shareholders during the takeover process.
Musk was not entirely exonerated. While he avoided liability for certain fraud claims, the jury determined he misled investors by downplaying the value of Twitter through strategic statements. The case revolved around a class-action lawsuit initiated before Musk assumed control, which he later rebranded as X.
Key Allegations and Testimony
Jurors evaluated whether two specific posts—along with comments on a podcast—constituted intentional deception. These statements, made in May 2022, included Musk’s claim that the takeover could not proceed unless Twitter’s CEO proved bot accounts accounted for less than 5% of the platform’s users.
“He trashed the company. Trashed the executives. And tanked the stock,” said Mark Molumphy, the shareholders’ lawyer, during his closing remarks.
Musk’s legal team argued that his concerns about bots were genuine and that his public criticism of the platform did not equate to fraudulent intent. They emphasized that his decision to step back from the deal was based on Twitter’s alleged misrepresentation of fake accounts.
The company pursued legal action to enforce the original agreement after Musk withdrew. Eventually, he agreed to fulfill his initial commitment, completing the purchase in October 2022.
Although the exact damage amount remains unspecified, it is expected to reach billions of dollars, impacting numerous institutional investors. Musk’s net worth, currently around $814 billion, is largely tied to Tesla stock, though the verdict may affect his financial standing.
Additional Related Stories
Trump’s wealth surged in a recent update to the global billionaire list, highlighting his growing financial influence. Meanwhile, Grok faced criticism for its posts on fatal football incidents, described as “sickening” by a government official.
The UK has also connected its first mobile network to Elon Musk’s Starlink satellites, expanding the satellite internet service’s reach. These developments underscore Musk’s expanding impact across industries, even as legal challenges persist.
Separately, Musk is engaged in discussions to resolve a U.S. Securities and Exchange Commission lawsuit. The agency alleges he delayed disclosing early Twitter purchases to capitalize on lower stock prices before investors became aware of his actions.
Follow Sky News for more updates on breaking stories, including coverage of UK satellite connections and investigations into Grok’s content policies.
