A US jury has concluded that Elon Musk made misleading public statements during his high-profile 2022 attempt to acquire Twitter, siding with investors who claimed they suffered financial losses as a result. The unanimous verdict was delivered in a federal court in San Francisco after two days of deliberations. The case was brought by a group of investors who argued they relied on Musk’s public comments and social media posts when making trading decisions.
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Jurors found that some of Musk’s remarks about the platform—particularly concerning the number of fake accounts and uncertainty over completing the $44bn deal—were intentionally misleading.
Statements Deemed Misleading
During the trial, Musk had defended his actions, saying he did not intend to deceive investors and that his statements had been misinterpreted. However, the jury rejected that argument.
The panel determined that Musk’s comments contributed to fluctuations in Twitter’s share price between May and October 2022, a critical period during the takeover process.
Financial Impact On Investors
According to the verdict, Musk’s statements artificially reduced the company’s stock value by between $3 and $8 per share. This decline affected investors who bought or sold shares during that time.
As a result, those involved in the class action lawsuit could now be entitled to financial compensation, potentially amounting to thousands of dollars each.
The lead plaintiff, an investor from Oregon, told the court he sold shares at a loss after concluding from Musk’s public remarks that the deal would not go ahead. He later saw the acquisition completed at a significantly higher price, reinforcing his claim of financial harm.
Legal And Market Implications
Legal analysts say the ruling highlights the potential consequences for high-profile executives whose statements can influence financial markets.
One trial lawyer said the outcome sends a strong signal that individuals who move markets through public comments can be held accountable for the impact of their words.
This is not the first legal challenge linked to Musk’s use of social media. He previously faced a lawsuit from shareholders of Tesla over his posts, although he was cleared of wrongdoing in that case.
Takeover Turmoil
The dispute centred on a turbulent period when Musk publicly questioned Twitter’s user data, particularly the prevalence of automated or fake accounts. At one point, he indicated the acquisition was “on hold” before later attempting to withdraw from the deal entirely.
Twitter responded by launching legal action to compel Musk to proceed with the purchase. In October 2022, he completed the acquisition at the originally agreed price of $54.20 per share.
The platform was subsequently rebranded as X.
Ongoing Fallout
The case underscores the broader risks associated with corporate communications in the digital age, especially when executives use social media to discuss major business transactions.
Lawyers for both sides have not commented publicly on the verdict.
While the ruling does not end Musk’s legal challenges, it represents a significant development in holding influential figures accountable for statements that can affect financial markets.
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Adapted by ASEAN Now. Source 21 March 2026