A federal jury in San Francisco has found Elon Musk liable for making false and misleading public statements in 2022 about his acquisition of Twitter, now known as X. The verdict, delivered on February 9, 2024, concluded a class-action securities fraud lawsuit brought by former Twitter shareholders. They alleged that Musk's tweets and regulatory filings about the deal caused significant volatility and financial harm.
The lawsuit centered on a crucial period in April and May 2022. Investors argued that Musk misled the market by failing to promptly disclose that he had acquired more than 5% of Twitter's stock, a regulatory requirement, and by later tweeting that the deal was "on hold" over spam account concerns without a valid basis. The jury determined these actions violated securities laws.
The trial, which began in late January 2024, featured testimony from Musk himself. The ruling establishes liability, but the damages phase to determine financial penalties was scheduled for a later date. This case is separate from other legal challenges Musk has faced related to the $44 billion takeover.
