Jury rules: Elon Musk defrauded Twitter investors in 2022 to bring down purchase price; Tesla's CEO's lawyers vow appeal

A US Jury has found that Elon Musk had defrauded Twitter (now X) investors during his attempt to buy the company in 2022. According to a Bloomberg report, the jury said Musk made misleading statements about the platform, including claims about fake accounts, which affected the company’s stock price.

The case was heard in a federal court in San Francisco. The eight-member jury concluded that Musk misled investors through his public statements and tweets. These included his claim that the deal was “temporarily on hold” over concerns about spam and fake accounts.Jurors said these statements contributed to a drop in Twitter’s share price during the deal period. The panel reviewed how Musk’s comments affected the stock over several months.

Damages to be decided later

The court has not yet fixed the amount Elon Musk will have to pay. The final damages will be decided after investors submit their claims. Lawyer Mark Molumphy, representing investors, said the damages could reach $2.6 billion.

Elon Musk’s lawyers respond

Elon Musk’s legal team said they will appeal the verdict.“We view today’s verdict, where the jury found both for and against the plaintiffs and found no fraud scheme, as a bump in the road,” his lawyers said.

“And we look forward to vindication on appeal.”

Background of the case

The case relates to Elon Musk’s $44 billion deal to buy Twitter in 2022. Investors argued that his statements were aimed at lowering the company’s value so he could renegotiate the deal.During the trial, Musk said he believed Twitter executives had misled him about the number of fake accounts on the platform. He also admitted that one of his tweets may have been a mistake, saying, “It may not be my wisest tweet.”The case is part of a series of legal battles involving Musk related to his public statements and business deals.