Elon Musk found liable for fraud in Twitter takeover lawsuit

A US federal jury has found Elon Musk liable for defrauding Twitter shareholders in relation to his $44 billion acquisition of the company in 2022. The lawsuit alleged that Musk intentionally misrepresented the number of bot accounts on the platform to drive down the stock price and potentially renegotiate or abandon the deal. Jurors determined that Musk made two fraudulent statements – one claiming the purchase was paused for bot verification and another suggesting a higher-than-reported percentage of spam accounts.

Shareholders’ lawyer Francis Bottini stated that damages could reach around $2.5 billion, emphasizing that Musk’s wealth does not exempt him from accountability for market-moving statements. Musk’s legal team intends to appeal the verdict, calling it a temporary setback. While the jury did not find evidence of an overarching fraudulent scheme, they did confirm Musk’s liability for the specific misleading statements.

The lawsuit covers investors who sold Twitter shares between May 13 and October 4, 2022. This verdict follows a history of legal battles for Musk, including a previous win in a case concerning a “funding secured” Tesla tweet and ongoing settlement talks with the US Securities and Exchange Commission regarding delayed disclosure of his initial Twitter stock purchases. Separately, SpaceX acquired Musk’s AI firm xAI in February, creating a company valued at $1.25 trillion.

(Source：Thesun)