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San Francisco Jury Finds Elon Musk Liable for Defrauding Twitter Shareholders

Damages will be set later, with investor loss estimates in the low billions.

Overview

  • Jurors returned a unanimous verdict after nearly four days of deliberations following a trial that began on March 2.
  • The panel concluded two Musk tweets on May 13 and 17, 2022, were materially misleading and helped drive a sharp drop in Twitter’s share price, including nearly 10% in one session.
  • Musk was cleared of an alleged coordinated scheme to depress the stock, and a podcast comment was deemed opinion rather than a factual claim.
  • Plaintiffs’ lawyers cited total losses of about $2.1 billion, while shareholders’ attorney Francis Bottini estimated potential damages near $2.5 billion.
  • Musk’s legal team called the decision an obstacle and said they plan to appeal, as the case moves to determine the size of any payout.