Musk found liable to Twitter shareholders in fraud lawsuit over $44bn takeover
A US jury found Elon Musk liable for defrauding Twitter shareholders by misrepresenting the number of bot accounts on the platform.Summary
A US federal jury determined that Elon Musk defrauded Twitter shareholders in 2022 by attempting to lower the social media company’s stock price to renegotiate or abandon his $44 billion takeover bid. The lawsuit centered on Musk’s claims that Twitter misrepresented the number of fake and spam accounts, or “bots,” on its platform. Jurors found Musk liable for two statements questioning the bot percentage, potentially depressing the stock price between May 13 and October 4, 2022. While damages are still being calculated, estimates reach $2.5 billion. Musk’s legal team intends to appeal the verdict, calling it a “bump in the road.” This case follows similar legal battles involving Musk and shareholder claims of fraud related to Tesla, both of which he previously won. Musk ultimately completed the Twitter acquisition in October 2022, rebranding it as X.
(Source：Geo Tv)