A U.S. jury has found Elon Musk liable for losses incurred by Twitter investors, ruling that his public statements during the company’s $44 billion acquisition influenced the platform’s share price.
The verdict, delivered on Friday at the U.S. District Court for the Northern District of California, concluded that Musk’s posts—particularly one indicating the deal was “temporarily on hold”—had a material impact on investors. However, the jury stopped short of determining that he intentionally sought to manipulate the market.
Lawyers representing shareholders of Twitter argued that Musk’s remarks were strategic, aimed at exerting pressure on the company and lowering its valuation during negotiations. Aaron Arnzen, counsel for the investors, accused Musk of using his social media influence to “trash” the company and renegotiate terms, while fellow lawyer Mark Molumphy said the ruling underscores that even powerful individuals are subject to the law.
While the court is yet to determine damages, legal representatives for former shareholders estimate that Musk could face payouts of up to $2.5 billion. In response, Musk’s legal team described the decision as “a bump in the road” and signalled plans to appeal.
Musk initially announced his intention to acquire Twitter in April 2022, citing concerns about spam and fake accounts. He later questioned the company’s disclosures on bot activity and attempted to withdraw from the deal, prompting Twitter to file suit to enforce the agreement. The acquisition was eventually finalised in October 2022 at the original price, after which Musk took the company private and rebranded it as X.
During the trial, Musk maintained that his concerns were genuine and not intended to sway the market. He acknowledged the controversial nature of his posts but argued he did not believe they would significantly influence share prices.
The case adds to a broader pattern of scrutiny over Musk’s market-moving statements, particularly on social media. His posts have previously been linked to sharp movements in assets such as Dogecoin, raising ongoing concerns about the influence of high-profile individuals on financial markets.
Musk, widely regarded as one of the world’s richest individuals, was previously cleared in 2023 of separate claims that his tweets misled investors during a failed 2018 attempt to take Tesla private.
