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 has ruled that Elon Musk intentionally misled shareholders by manipulating Twitter’s stock price prior to his $44 billion acquisition of the social media platform. The verdict highlights the controversy surrounding Musk’s public statements, which were central to the legal dispute.
Musk, the world’s wealthiest individual, was not entirely absolved of fraud charges. While he faced allegations of deliberately driving down the company’s value, the jury did not find him liable for all claims. The case revolved around a class-action lawsuit that emerged just before Musk assumed control, later rebranded as X.
Bot Claims at the Heart of the Dispute
The lawsuit focused on Musk’s assertions during a May 2022 podcast. He claimed Twitter’s leadership had overstated the proportion of fake accounts, or bots, on the platform. Jurors were tasked with determining if these statements constituted intentional deception, prompting investors to sell shares based on his remarks.
“He trashed the company. Trashed the executives. And tanked the stock,” asserted Mark Molumphy, the plaintiffs’ attorney, during his closing argument.
Musk’s legal team defended his position, arguing that his concerns about bots were genuine. They emphasized that his critiques did not indicate a fraudulent intent, but rather a sincere effort to highlight the platform’s challenges. The billionaire cited these misrepresentations as a reason to withdraw from the deal initially.
After Musk attempted to exit the agreement, Twitter pursued legal action to enforce the original terms. He eventually agreed to proceed with the purchase, which was finalized in October 2022. The jury is yet to decide the exact financial penalty, though it is expected to be substantial.
Additional Developments
Separately, Musk is engaged in negotiations to resolve an SEC lawsuit alleging he delayed disclosing early stock purchases to capitalize on lower prices. The case also included Musk’s public criticism of Twitter’s bot statistics, which became a focal point for shareholders.
Meanwhile, new updates reveal Trump’s surge in wealth, as he is listed among the latest billionaires. Additionally, the UK has linked its mobile network to Starlink satellites, marking a significant step in space-based connectivity.
Listen to The World with Richard Engel and Yalda Hakim each Wednesday. For more insights, visit Sky News for coverage on UK Starlink integration and French raids targeting Grok’s image content.
