Elon Musk Found Liable for Misleading Investors in Twitter Acquisition Case

In a significant legal ruling, a jury found Elon Musk liable for misleading investors during his acquisition of Twitter, now known as X. The court determined that Musk intentionally affected Twitter's stock price before the USD 44 billion deal, although he was not found guilty of fraud. Shareholders are set to receive damages estimated at around USD 2.1 billion. This case highlights the accountability of even the wealthiest individuals in the financial markets. The trial also delved into Musk's claims about the number of bots on Twitter, which he used as a justification for attempting to withdraw from the purchase. The outcome of this trial sends a strong message regarding legal compliance for all investors.

By Narendra Chaudhary Mar 21, 2026, 09:10 IST

Jury Verdict on Musk's Investor Misleading Case

San Francisco: On March 20, a jury determined that Elon Musk misled investors prior to his acquisition of Twitter in 2022. The federal court in San Francisco concluded that Musk intentionally lowered Twitter's stock price in the months leading up to the USD 44 billion deal. However, the jury did not find him guilty of fraud, stating he did not engage in a scheme to deceive investors, as reported by a news agency.

This civil trial stemmed from a class-action lawsuit filed shortly before Musk assumed control of Twitter, which he later rebranded as X. Jurors were tasked with deciding whether Musk's two tweets made during a podcast in May 2022 constituted intentional fraud against Twitter shareholders. After four days of deliberation, the nine-member jury reached their verdict, which was announced after the trial commenced on March 2.

The jury concluded that Musk misled investors with one of his tweets claiming the Twitter deal was 'temporarily on hold,' but they did not find that he had intentionally schemed to defraud them with his podcast statements. Shareholders were awarded damages estimated between USD 3 and USD 8 per stock per day, totaling around USD 2.1 billion, according to the plaintiffs' legal team. Musk's current net worth is reported to be approximately USD 814 billion.

Joseph Cotchett, an attorney representing the plaintiffs, remarked, 'This is a significant victory not only for Twitter investors but also for the integrity of public markets.' He emphasized that the jury's decision sends a clear message that wealth and power do not exempt individuals from legal accountability.

Musk's legal team has not publicly commented on the jury's ruling. A significant portion of the trial revolved around Musk's assertions regarding the prevalence of bots on Twitter. He claimed that the platform had a far greater number of fake and spam accounts than the 5 percent disclosed in its regulatory filings. Musk cited this alleged misrepresentation as a reason for his attempt to withdraw from the acquisition.

Following Musk's attempt to back out, Twitter initiated legal proceedings in Delaware to compel him to fulfill his original agreement. Just before the trial was set to begin, Musk changed his stance and agreed to proceed with the purchase as initially planned.