Musk Ordered to Pay $2 Billion In Twitter Shareholder Lawsuit, Found Liable But Absolved of Fraud
Elon Musk was found liable for misleading investors regarding his Twitter acquisition, potentially owing $2.1 to $2.6 billion, but was not convicted of fraud.Summary
A jury found Elon Musk liable for misleading investors during his 2022 takeover of Twitter, specifically regarding his public questioning of the platform’s bot estimates and suggestions of pausing the deal. These actions allegedly drove down Twitter’s stock price, resulting in losses for shareholders who sold during that period. While the jury rejected claims of outright fraud, they determined Musk’s statements were misleading. Damages are estimated to be between $2.1 and $2.6 billion, and will likely take six months to be distributed to plaintiffs.
Musk testified that his tweets reflected his personal views and weren’t intended to manipulate the market, maintaining his belief that Twitter underestimated its bot count. However, the plaintiffs’ lawyers argued his statements were deliberate attempts to drive down the share price to renegotiate or exit the deal. They highlighted the significant drop in Twitter’s stock value during the period of uncertainty.
The verdict is considered a precedent, potentially leading to increased scrutiny of public statements made by executives during high-stakes deals. Attorneys for the plaintiffs emphasized that the ruling reinforces the principle that even wealthy and powerful individuals are subject to the law.
(Source：Sfist)