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 manipulating Twitter’s stock price in the months prior to his $44 billion acquisition of the social media company. The verdict came from a civil trial in San Francisco, where Musk faced allegations of deceptive practices. While the jury found him responsible for some misrepresentations, certain fraud claims were dismissed.
The lawsuit centered on Musk’s statements during a podcast in May 2022, which he claimed were pivotal in his decision to withdraw from the deal. Shareholders argued that his remarks—specifically about Twitter’s bot account figures—drove down the company’s share price and influenced their selling behavior. The court presented a tweet from that period where Musk asserted the takeover could not proceed unless the bot percentage fell below 5%.
“He trashed the company. Trashed the executives. And tanked the stock,” stated Mark Molumphy, the shareholders’ attorney, during his closing remarks.
Musk’s defense, led by Michael Lifrak, contended that his concerns about bots were genuine and that vocalizing these issues did not constitute intent to deceive. The billionaire cited Twitter’s underreporting of fake accounts as a justification for pulling out of the purchase. However, the jury concluded his actions amounted to intentional misrepresentation.
Following his withdrawal, Twitter pursued legal action to enforce the original agreement. Musk ultimately agreed to finalize the deal in October 2022, though the case remains unresolved. The amount he may owe to affected shareholders is still under review, but it could reach billions of dollars. His net worth, currently around $814 billion, is largely tied to Tesla stock.
Separate Settlement Talks Underway
Musk is also engaged in discussions to settle a separate U.S. Securities and Exchange Commission (SEC) lawsuit. The SEC accused him of delaying the disclosure of his initial Twitter stock purchases in 2022, allowing him to buy shares at lower prices before revealing his intentions to investors.
Additional news highlights include Trump’s surge in wealth following the latest billionaire rankings, Grok’s commentary on tragic football incidents, and the UK’s integration of Starlink satellites into its mobile network. The Sky News app continues to offer breaking updates and exclusive coverage of these developments.
