Shareholders Awarded $2.6 Billion in Twitter Takeover Case

Elon Musk Found Liable by US Jury for Misleading Twitter Shareholders in 2022​

Jury Rules on False Statements Linked to Twitter Deal​

New Delhi, March 21: A US federal jury in California has found Tesla and SpaceX founder Elon Musk liable for misleading Twitter shareholders in 2022 through statements that impacted the company’s stock price.

The verdict centres on Musk’s public remarks during his $44 billion takeover bid for Twitter, now known as X. According to reports, Musk allegedly attempted to renegotiate or withdraw from the deal based on statements that were later deemed false.

Claims on Fake Accounts Deemed Misleading​

Jurors concluded that two out of three statements made by Musk in May 2022 were intentionally misleading. These included tweets and podcast comments suggesting that Twitter had an excessive number of fake and spam accounts.

The jury determined that these claims were aimed at influencing shareholders to sell their stock, thereby depressing the company’s share price during a critical phase of the acquisition.

Court Rejects Broader Fraud Scheme Allegation​

While the jury found Musk liable for intentional deception, it stopped short of concluding that he engaged in a broader scheme to defraud investors. Two additional fraud-related claims were rejected by the panel.

Musk had defended himself against allegations that he misrepresented Twitter’s disclosure of bot accounts on the platform.

Investors Likely to Receive $2.6 Billion in Damages​

Following the verdict, Twitter investors are expected to receive approximately $2.6 billion in damages. This estimate was cited in reports referencing Mark Molumphy, a lawyer representing the investors.

Developments at X Amid Ongoing Platform Changes​

Separately, Musk-led social media platform X has recently introduced new measures to address content authenticity. The platform has warned that creators posting AI-generated videos of armed conflict without disclosure could face a 90-day suspension from its revenue-sharing program.

X Product Head Nikita Bier stated that the move is part of efforts to curb manipulation and ensure access to reliable information during wartime situations.

The platform has also launched a “Made with AI” label to identify artificial intelligence-generated content.

Amid ongoing geopolitical developments, including the US-Israeli military campaign against Iran and the killing of Supreme Leader Ayatollah Ali Khamenei, Musk and Bier recently stated that traffic on X has reached a new all-time high.