A jury on Friday found that Elon Musk’s complaints about bots on Twitter ahead of his purchase of the site were intentionally misleading to shareholders.
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The jury in Musk’s San Francisco securities fraud trial unanimously found him liable for making two misleading statements in the run-up to his 2022 acquisition of the social media site. They rejected two other fraud claims.
The jury calculated how much Musk’s complaints about bots on Twitter affected the company’s share price before his acquisition, tracking five months of stock activity that showed a steep drop off after his comments. The jury found that Musk’s remarks were intended to lower the company’s value to secure a better deal in his $44 billion takeover.
The suit, brought by former Twitter shareholders, was filed in October 2022. After a three-week trial, the jury deliberated for about three days before reaching its decision. Lawyers for Musk are expected to appeal the finding.
Monte Mann, business litigation partner and trial lawyer at the law firm Armstrong Teasdale, told Business Insider the verdict reflects how juries are increasingly scrutinizing whether executives’ public statements function as dealmaking tools, not just opinions.
“What likely resonated with the jury was the pattern—statements, timing, and market reaction all lining up in a way that suggested this wasn’t just commentary,” Mann said. “It looked like strategy.”
Damages in the case, which attorneys for the plaintiffs said may amount to $2.6 billion, will be determined after affected shareholders submit claims.
X, Musk, his attorney, and an attorney representing the plaintiffs did not immediately respond to requests for comment.
