Elon Musk misled investors during Twitter takeover, US jury finds
Elon Musk misled investors during Twitter takeover, US jury finds
A federal jury in San Francisco ruled that Elon Musk intentionally misled investors by manipulating Twitter’s stock price prior to his $44bn acquisition of the social media platform. The verdict focused on his actions during the months before the deal was finalized, though some fraud charges were dismissed.
The lawsuit, filed as Musk gained control of the company, centered on two statements he made during a podcast in May 2022. Shareholders argued these comments, which claimed the bot percentage on the platform was over 5%, caused them to sell shares based on false assurances. The jury agreed that Musk’s behavior constituted deliberate deception.
Mark Molumphy, the plaintiffs’ legal representative, highlighted Musk’s impact during closing arguments, stating,
“He trashed the company. Trashed the executives. And tanked the stock.”
Meanwhile, Musk’s defense attorney, Michael Lifrak, contended that the billionaire’s focus on bots was genuine, and his public critique did not imply fraudulent intent.
Despite retracting his offer, Musk ultimately completed the purchase in October 2022 after Twitter pursued legal action to enforce the original agreement. The exact damages remain uncertain, though estimates suggest they could reach billions, affecting thousands of shareholders including institutional investors.
His net worth, currently around $814bn, is heavily tied to Tesla shares, which remain a cornerstone of his financial portfolio. Separately, Musk is negotiating a settlement with the US Securities and Exchange Commission over alleged delayed disclosures of his Twitter stock purchases in 2022.
Other recent news highlights include Trump’s surge in wealth as a new billionaire list was released, Grok’s criticism of fatal football disasters, and the UK’s integration of its first mobile network with Starlink satellites. Sky News continues to provide updates, urging readers to install their app for breaking news alerts.
