Elon Musk misled investors before buying Twitter in 2022, finds US jury — $2.6 billion coming for shareholders?
A US jury found Elon Musk liable for misleading Twitter shareholders about the number of fake accounts, potentially costing him $2.6 billion.Summary
A US federal jury in California determined that Elon Musk misled Twitter shareholders in 2022 by downplaying the number of fake accounts on the platform, influencing the share price before his $44 billion acquisition of the company (later renamed X). The jury found Musk intentionally misled investors through tweets and podcast statements suggesting a higher prevalence of bots than reported. While the jury did not find evidence of a deliberate “scheme” to defraud, they held Musk responsible for specific misleading statements.
Shareholders challenged three statements made by Musk after agreeing to buy Twitter, and the jury found him liable for two of them, relating to the percentage of bot accounts. The trial included testimony from Musk and former Twitter executives, detailing the six months of uncertainty caused by Musk’s fluctuating commitment to the deal.
Investors are potentially eligible for $2.6 billion in damages, calculated at $3 to $8 per share, though this amount is unlikely to significantly impact Musk’s substantial net worth. Legal representatives for the plaintiffs hailed the verdict as a victory for market accountability, emphasizing that even wealthy individuals are subject to the law.
(Source：Livemint)