Elon Musk Found Liable for Twitter (X) Stock Manipulation
A California jury has found Elon Musk liable for misleading investors prior to his $44 billion acquisition of Twitter, now known as X, in 2022. The verdict, delivered Friday in San Francisco, favors a group of investors who alleged Musk intentionally disseminated false information that drove down the company’s stock price, according to reports from multiple news outlets.
The lawsuit, which began trial earlier this month, centered on Musk’s public statements regarding the potential deal. While Musk’s legal team argued he was sharing legitimate concerns and did not intend to manipulate the stock, the jury sided with the investors. Donald Trump’s former advisor, who testified during the trial, stated he did not perceive Musk’s statements as having a detrimental effect on the stock price or harming investors, a claim the jury evidently did not discover persuasive.
“We are remarkably pleased with the jury’s decision today. They sent a powerful message that no one is above the law,” said Mark Molumphy, attorney for the investors, as reported by Al Jazeera. His colleague, Joseph Cotchett, characterized the outcome as a “significant victory.”
Still, the jury did not find Musk guilty on all counts. Two allegations – that Musk deliberately intended to mislead shareholders – were not substantiated. Despite this, the investors are entitled to damages. The exact amount Musk will be required to pay remains to be determined, but reports indicate the jury awarded investors between $3 and $8 per share, potentially totaling around $2.5 billion, according to DW News.
The potential $2.5 billion payout represents a relatively tiny fraction of Musk’s overall net worth, which recently surpassed $800 billion, making him the first person to achieve that financial milestone.
The verdict comes amid ongoing scrutiny of Musk’s leadership of X, formerly Twitter, and follows recent criticism from figures like Jon Stewart, whom Musk labeled an “extremely skilled propagandist” according to reporting from the Independent. Musk’s acquisition of Twitter has been marked by significant changes to the platform’s policies and workforce, sparking debate about free speech and content moderation.