A federal jury in San Francisco found on Friday that Elon Musk misled investors by making “intentionally misleading” statements during his 2022 takeover of Twitter, according to the BBC.
After two days of deliberations, the federal jury returned a unanimous verdict against the tycoon, rejecting his argument that the public had “over-interpreted” his posts.
The court ruled that Musk's claims about problems with Twitter users and his threat to walk away from the $44 billion deal were, in fact, “intentionally misleading.”
Although lawyers for both sides declined immediate comment, Friday's verdict marks a change from 2023, when Musk won a similar lawsuit brought by Tesla shareholders.
The court has now ruled that the billionaire's statements artificially reduced the price of Twitter shares by between $3 and $8 in the months leading up to the purchase.
The verdict could mean thousands of dollars in damages for each investor in the plaintiff class, sending a “clear message,” according to Monte Mann, a commercial litigation attorney at Armstrong Teasdale.
“If you influence the market with your words, you take the consequences.”
The jury thus sanctioned Musk's strategy since May 2022, when he claimed the deal was “on hold” due to issues with fake accounts, before announcing he wanted to walk away from the deal entirely.
Those months of uncertainty proved damaging for investors like Brian Belgrave, an Oregon entrepreneur who told the jury he sold thousands of shares in July 2022, believing Musk would retire.
“I was duped. I was cheated,” said Belgrave, who sold at a price well below the $54.20 the billionaire later paid to complete the purchase.
During the hearings, Musk took a combative tone, often refusing to answer the lawyers' questions directly, but admitted at one point: “If this was a trial about me writing stupid tweets, I'd say I'm guilty.”
Musk's legal team described the San Francisco court's decision as a mere “roadblock” and announced it would appeal, Reuters writes.
