US Jury Finds Elon Musk Misled Twitter Shareholders
A US jury ruled Elon Musk misled Twitter shareholders with his tweets, potentially costing him billions in damages.Summary
A federal jury in California found Elon Musk liable for misleading Twitter shareholders in May 2022, causing a drop in the company’s share price before his $44 billion acquisition. The lawsuit, brought by investor Giuseppe Pampena on behalf of shareholders who sold stock between mid-May and early October 2022, centered on two tweets Musk posted regarding the number of “bots” on the platform. Jurors determined these statements were false and misleading, violating securities rules. Musk’s legal team plans to appeal the decision, calling it a “setback,” while acknowledging his history of successfully navigating legal challenges – a reputation earning him the nickname “Teflon Elon.” The plaintiffs argued Musk intentionally lowered the stock price to renegotiate the purchase price or abandon the deal altogether, especially as Tesla’s share value declined. Despite initially attempting to withdraw from the acquisition, Musk ultimately completed the purchase in late October 2022 and rebranded Twitter as X. Forbes estimates Musk’s net worth at $839 billion, largely based on his holdings in Tesla and SpaceX.
(Source：Deccan Chronicle)