Elon Musk misled investors during Twitter takeover, US jury finds
Elon Musk’s Twitter Takeover Faced Fraud Claims
In a recent ruling, a U.S. jury determined that Elon Musk deliberately manipulated Twitter’s stock price prior to his $44 billion acquisition of the social media platform. The verdict followed a civil trial in San Francisco, where Musk’s actions were scrutinized for misleading investors.
While the jury found Musk responsible for deceiving shareholders, it did not convict him on all charges. The case revolved around a class-action lawsuit filed shortly before Musk assumed control of Twitter, which he rebranded as X.
Twitter Shareholders’ Allegations
Jurors were tasked with assessing whether Musk’s remarks during a podcast in May 2022 constituted intentional fraud. These statements, which included claims about Twitter’s bot population, were said to have influenced investors’ decisions to sell their shares.
“He trashed the company. Trashed the executives. And tanked the stock,” stated Mark Molumphy, representing the shareholders, during his closing argument.
Musk’s legal team countered that his focus on bots was genuine, and that his public criticism did not equate to fraudulent intent. They argued that his concerns about the platform’s authenticity were valid and that he used this as a justification to withdraw from the deal.
Following Musk’s attempt to rescind the purchase, Twitter pursued legal action to enforce the original agreement. Musk eventually agreed to fulfill his initial commitment and finalized the acquisition in October 2022.
Additional Context
The trial also highlighted Musk’s claim that Twitter had misrepresented the number of fake accounts on its network. This became a central point in his defense, as he cited the issue as a reason to delay the takeover.
Separately, Musk is engaged in discussions to resolve a pending SEC lawsuit. The agency alleges he delayed disclosing early purchases of Twitter stock to capitalize on lower prices before revealing his strategy to investors.
Meanwhile, unrelated news reports noted Trump’s surge in wealth and the UK’s integration of its mobile network with Starlink satellites. These stories underscore Musk’s expanding influence across industries.
