Elon Musk misled investors during Twitter takeover, US jury finds
Elon Musk’s Twitter Takeover Linked to Investor Misleading
A U.S. jury has ruled that Elon Musk intentionally misled investors during his acquisition of Twitter, a social media platform, with a valuation of $44 billion. The verdict centers on his actions in the months prior to the takeover, which he later rebranded as X.
Civil Trial Outcomes
The tech mogul, recognized as the world’s wealthiest individual, was cleared of certain fraud charges in the San Francisco-based civil trial. The case originated from a class-action lawsuit filed shortly before Musk assumed control of the company.
Tweets and Bot Claims
Jurors evaluated whether two tweets and podcast remarks made by Musk in May 2022 constituted deliberate deception. The statements, which emphasized Twitter’s bot percentage, were pivotal in shaping investor decisions. Musk argued that his concerns about fake accounts were genuine, and that highlighting the issue did not equate to fraud.
“He trashed the company. Trashed the executives. And tanked the stock,” said Mark Molumphy, representing the shareholders, during his closing remarks.
Musk cited Twitter’s misrepresentation of bot numbers as a reason to withdraw from the purchase. Despite this, he eventually agreed to fulfill his original commitment, completing the acquisition in October 2022. The exact damages remain unspecified, though estimates suggest billions could be owed to shareholders, including major institutional investors.
Fortune Tied to Tesla Shares
His current net worth, approximately $814 billion, is largely influenced by Tesla stock. The case also highlights Musk’s separate discussions to settle a U.S. Securities and Exchange Commission lawsuit, which alleges he delayed disclosing early Twitter purchases to capitalize on lower prices.
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