A California jury has ruled that Elon Musk misled investors during his chaotic $44 billion takeover of Twitter, dealing a major legal blow to one of the world’s most powerful tech figures.
The decision stems from a class-action lawsuit filed in 2022, when Musk publicly cast doubt on the deal, triggering a sharp drop in Twitter’s stock price.
At the center of the case was a May 13 tweet in which Musk claimed the acquisition was “temporarily on hold.”
Investors argued that the statement caused panic selling and wiped billions off the company’s value.
They claimed Musk intentionally created uncertainty to drive down the price and renegotiate the deal on better terms.
Just days later, Musk added fuel to the fire by suggesting the purchase price could be lowered, saying it wasn’t “out of the question” to pay less than the agreed $44 billion.
After nearly four days of deliberation, a nine-person jury in San Francisco sided with investors on that key issue.
Jurors concluded that Musk’s public statements were misleading and had a direct impact on the market.
However, they stopped short of calling it a full fraud scheme.
That distinction matters.
While Musk was found liable for misleading investors, the jury did not agree he orchestrated a deliberate, coordinated fraud.
Even so, the financial consequences could be massive.
Damages in the case are expected to reach around $2.5 billion, depending on how many investors join the class action.
That figure could grow as more claims are filed.
Musk’s legal team is already pushing back.
They described the ruling as “a bump in the road” and confirmed plans to appeal, pointing to other cases where Musk has successfully overturned decisions.
Musk himself defended his actions during testimony, arguing that Twitter executives misled him about the number of fake accounts on the platform.
He maintained that his concerns were legitimate and that he ultimately followed through with the deal, benefiting investors who held onto their shares.
“I can’t control whether people sell their stock,” Musk said. “But everyone who held the stock fared extremely well.”
Still, the timeline tells a different story, as reported by the Daily Mail.
After Musk signed the initial agreement in April 2022, the deal quickly descended into chaos.
By July, he attempted to walk away entirely, sending Twitter’s stock plunging nearly 40% below the agreed purchase price.
The legal battle that followed forced Musk’s hand.
Facing a court deadline, he completed the acquisition in October 2022 at the original price.
Since then, Musk has completely reshaped the platform, rebranding Twitter as X and overhauling its structure.
Now, this verdict adds a new chapter to that saga.
