A federal jury in San Francisco concluded that tech entrepreneur Elon Musk misled some shareholders during his attempt to purchase Twitter in 2022, a deal that was ultimately completed for about $44 billion.
The case focused on several public comments and social media posts in which Musk questioned the number of fake accounts on the platform. According to the jury, some of those statements were misleading and contributed to a drop in the company’s stock price, affecting investors who sold their shares during that period.
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The lawsuit was filed by shareholders who claimed they lost money due to the market volatility surrounding the negotiations for the acquisition. Although the jury determined that certain statements were misleading, it did not conclude that there was a full fraud scheme behind them.
What could happen to Elon Musk now?
The billionaire could face billions of dollars in compensation claims from shareholders, although his legal team has already indicated that they plan to appeal the court’s decision.
