A California jury on Friday found Elon Musk liable for misleading investors in the lead-up to his $44 billion acquisition of Twitter, now known as X, though it did not conclude he intentionally engaged in a fraudulent scheme. The verdict, delivered in San Francisco, centers on claims that Musk misrepresented information about the social media platform, impacting its stock price.
The class action lawsuit, Pampena v. Musk, was originally filed in October 2022, shortly before Musk finalized the purchase of Twitter at $54.20 per share. Investors alleged that Musk deliberately drove down the stock price with public statements and tweets that cast doubt on the deal’s completion. They argued that these actions led them to sell their shares at a loss, missing out on the eventual acquisition price.
While the jury determined Musk misled investors, it stopped short of finding that he acted with the intent to defraud them. “The jury found both for and against the plaintiffs and found no fraud scheme,” according to a statement released by Musk’s attorneys at Quinn Emanuel. The potential damages could reach up to $2.6 billion, according to attorneys representing the investors.
The trial featured testimony from Musk himself, who defended his actions during the tumultuous takeover process. Musk initially agreed to purchase Twitter in April 2022, but subsequently attempted to withdraw from the deal, citing concerns about the number of bot and spam accounts on the platform. He ultimately completed the acquisition in October 2022, after a period of legal battles.
“Here’s a great example of what you cannot do to the average investor — people that have 401ks, kids, pension funds, teachers, firemen, nurses,” said Joseph Cotchett, an attorney for the Twitter investors, speaking to CNBC outside the courthouse. “That’s what this case was all about. This was not about Musk. It was about the whole operation.”
Following the acquisition, Musk rebranded Twitter as X and has since integrated it with his artificial intelligence company, xAI, and his aerospace manufacturer, SpaceX. The changes have been met with mixed reactions, and the platform continues to face challenges related to content moderation and financial performance.
Musk’s legal team indicated their intention to appeal the verdict. As of Saturday, March 21, 2026, no court date for an appeal has been set.
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