Elon Musk misled investors during Twitter takeover, US jury finds
Elon Musk Misled Investors During Twitter Takeover, US Jury Finds
A U.S. jury ruled that Elon Musk intentionally lowered Twitter’s share price in the months before his $44bn (£33bn) acquisition of the social media platform. The decision came after a civil trial in San Francisco, where Musk was partially cleared of certain fraud claims.
Legal Proceedings and Bot Claims
The lawsuit, filed shortly before Musk assumed control of Twitter (now X), revolved around his statements about the platform’s bot activity. Jurors evaluated whether his tweets and podcast comments in May 2022 constituted deliberate deception.
“He trashed the company. Trashed the executives. And tanked the stock,” claimed Mark Molumphy, representing the shareholders, during his closing remarks.
Musk argued that his concerns about bots were genuine, asserting that highlighting the issue did not equate to fraud. He cited Twitter’s misrepresentation of fake accounts as a justification for halting the deal. The court presented a tweet from May 2022 where Musk stated the acquisition would not proceed unless the CEO proved bot activity was below 5%.
Potential Damages and Wealth
While the exact compensation remains uncertain, the verdict suggests Musk could face billions in damages from shareholders, including numerous institutional investors. His net worth, currently estimated at around $814bn (£610bn), is heavily tied to Tesla stock.
Additional News Outlets
Other reports highlighted Musk’s recent actions, such as: – Grok’s commentary on football tragedies was described as “sickening” by a government official. – The UK successfully connected its first mobile network to Starlink satellites. – French authorities raided offices to prevent Grok from sharing nude images.
Musk is also in negotiations to resolve a separate SEC case, which accuses him of delaying the disclosure of his Twitter stock purchases to buy more shares at lower prices. Despite the ruling, he finalized the acquisition in October 2022 after agreeing to fulfill his original commitments.
