Elon Musk misled investors during Twitter takeover, US jury finds
US Jury Finds Elon Musk Misled Investors in Twitter Takeover
In a recent ruling, a U.S. jury determined that Elon Musk intentionally manipulated Twitter’s stock valuation prior to his $44 billion acquisition of the platform, now rebranded as X. The decision came after a civil trial in San Francisco, where Musk was exonerated from certain fraud allegations.
Legal Battle Over Bot Claims
The case revolved around a class-action lawsuit filed shortly before Musk assumed control of the social media company. Jurors were tasked with evaluating whether two tweets and remarks from Musk, shared during a podcast in May 2022, constituted intentional deception that pressured shareholders to sell their stakes.
“He trashed the company. Trashed the executives. And tanked the stock,” claimed Mark Molumphy, representing the shareholders, during his closing remarks on Tuesday.
While the exact financial penalty remains uncertain, Musk may face billions in compensation for shareholders, including numerous institutional entities. His net worth, currently valued at approximately $814 billion, is heavily invested in Tesla stock.
Musk’s Defense and Final Purchase
Michael Lifrak, defending Musk, contended that the billionaire’s focus on bots was legitimate, asserting that highlighting the issue did not indicate fraudulent intent. Musk cited Twitter’s alleged underreporting of fake accounts as justification for withdrawing from the acquisition.
After he tried to back out, Twitter took legal action to enforce the original deal. Musk eventually agreed to honor his initial commitment and completed the purchase of Twitter in October 2022.
Additional Legal Proceedings
Separately, Musk is engaged in negotiations to settle a U.S. Securities and Exchange Commission civil case. The lawsuit accuses him of delaying the disclosure of his early Twitter acquisitions to buy more shares at discounted prices before informing investors of his strategy.
Further reading from Sky News includes: UK Integrates Starlink Satellites French Investigators Raid Offices to Halt Grok’s Nude Image Sharing. Listen to The World with Richard Engel and Yalda Hakim each Wednesday.
