A court in has ruled that billionaire misled shareholders of , contributing to a drop in the company’s share value during his $44 billion acquisition of the platform.
The ruling follows a three-week trial held in San Francisco, where a jury found that two posts Musk made in May 2022 contained misleading information that negatively impacted Twitter’s stock price.
Musk completed the acquisition of Twitter on October 27, 2022, later rebranding the platform as . After the takeover, he implemented sweeping changes, including laying off around 80% of the workforce, restructuring management, and revising workplace policies.
The case stemmed from allegations that Musk deliberately depressed Twitter’s share price as part of his strategy to renegotiate the purchase terms. Shareholders argued that his public statements particularly regarding concerns over fake accounts created uncertainty in the market and pushed the stock value down.
The lawsuit was filed by investor Giuseppe Pampena on behalf of shareholders who sold their stock between May and early October 2022. The court found that Musk violated securities laws that prohibit spreading false or misleading information capable of influencing stock prices.
Lawyers representing the plaintiffs welcomed the verdict, saying it reinforces the principle that no individual is above the law, regardless of wealth or influence.
They are seeking damages estimated between $3 and $8 per share per day, potentially totaling around $2.1 billion.
Musk’s legal team has already indicated plans to appeal the decision, arguing that the ruling unfairly tarnishes their client’s reputation.
Despite the legal setback, Musk remains the world’s richest individual, with an estimated net worth of $814 billion, largely tied to his holdings in .
This ruling comes after a separate 2023 case in which Musk was cleared of similar allegations brought by Tesla shareholders over his tweets about taking the company private.
Musk has not yet publicly commented on the latest verdict.