Elon Musk misled investors during Twitter takeover, US jury finds
Elon Musk misled investors during Twitter takeover, US jury finds
A U.S. jury determined that Elon Musk intentionally misled investors by lowering Twitter’s share price in the months prior to his $44 billion (£33 billion) acquisition of the social media company.
Despite this ruling, the tech mogul, currently the world’s wealthiest individual, was exonerated from certain fraud claims during the civil trial in San Francisco.
Legal Dispute Over Bot Claims
The case revolved around a class-action lawsuit filed shortly before Musk took control of Twitter, which he later rebranded as X. Jurors were tasked with evaluating whether two posts and remarks made by Musk on a podcast in May 2022 constituted deliberate deception, prompting shareholders to sell their stakes based on his statements.
“He trashed the company. Trashed the executives. And tanked the stock,” stated Mark Molumphy, the shareholders’ lawyer, during his closing argument on Tuesday.
Musk’s legal team argued that his concerns about bot accounts were genuine, asserting that highlighting the issue did not indicate fraudulent intent. The court presented a May 2022 tweet where Musk claimed his takeover could not proceed until Twitter’s CEO proved the bot percentage was below 5%.
The exact compensation Musk must pay to thousands of shareholders, including major institutional investors, remains uncertain, though it is projected to reach billions. His net worth, estimated at around $814 billion (£610 billion), is heavily tied to Tesla shares.
Other Related Developments
Separately, Trump experienced a significant rise in wealth as the latest billionaire list was released. Meanwhile, government officials criticized Grok’s posts about fatal football disasters, calling them “sickening.”
The UK has also linked its first mobile network to Elon Musk’s Starlink satellites, expanding the reach of the satellite internet service. In another update, French investigators raided offices at XX to prevent Grok from sharing nude images.
Following his initial withdrawal from the deal, Twitter pursued legal action to enforce the original purchase terms. Musk eventually honored his commitment and completed the acquisition in October 2022.
Additionally, Musk is in discussions to settle a U.S. Securities and Exchange Commission civil lawsuit, which accuses him of delaying the disclosure of his early Twitter stock purchases to secure lower prices before investors became aware of his actions.
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