San Francisco | A U.S. federal jury on Friday held Elon Musk liable for defrauding Twitter shareholders during his $44 billion (₹4.13 lakh crore) acquisition of the social media platform in 2022. The verdict concludes a closely watched civil trial in San Francisco federal court, in which Musk, the world’s richest person, faced allegations of making misleading statements about Twitter’s bot accounts to depress its stock price and renegotiate or withdraw from the deal.
Shareholders argued that Musk falsely suggested on social media that Twitter had significantly underreported the number of fake and spam accounts on its platform. Jurors found Musk responsible for two statements, while they did not find sufficient evidence for a broader claim of a coordinated scheme to defraud investors.
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Francis Bottini, attorney for the shareholders, estimated potential damages could reach approximately $2.5 billion (₹2,350.26 crore). “Musk’s status as the world’s richest man is not a free pass. If you are able to move markets with your tweets, you are responsible for the harm you cause to investors,” Bottini said.
Musk’s legal team at Quinn Emanuel Urquhart & Sullivan described the verdict as “a bump in the road” and confirmed plans to appeal. “We look forward to vindication on appeal,” they said in a statement.
The civil trial, which began on March 2, examined three statements Musk made shortly after agreeing to acquire Twitter in April 2022, questioning whether the platform was overrun with bots. One statement indicated that the purchase was “temporarily on hold” pending confirmation that bots represented less than 5% of users. Another claimed the percentage of bots could be “much” higher than 20%, suggesting that the takeover could not proceed unless Twitter’s CEO verified the figure was below 5%.
Musk’s attorney, Michael Lifrak, argued that Musk’s concerns about bots were genuine and that expressing them publicly did not constitute fraud or intent to deceive investors. The lawsuit covers investors who sold Twitter shares between May 13 and October 4, 2022, during the period Musk allegedly influenced the stock price.
Musk ultimately completed the Twitter acquisition in October 2022 and rebranded the platform as X. This case adds to Musk’s history of litigation over investor claims, including a 2023 San Francisco trial over Tesla’s 2018 “funding secured” tweet and Delaware litigation concerning his $139 billion (₹13.07 lakh crore) Tesla compensation package, both of which he won.
Separately, Musk is negotiating a settlement with the U.S. Securities and Exchange Commission over delayed disclosure of his initial Twitter purchases in 2022, which allegedly allowed him to buy more shares at lower prices before investors became aware of his transactions.
In February 2026, Musk’s SpaceX acquired his artificial intelligence company xAI, which hosts the X platform. The deal created the world’s most valuable private company, valued at approximately $1.25 trillion at the time.
Legal analysts said the verdict emphasizes that influential individuals cannot manipulate markets without accountability. It also signals to corporations and investors that public statements, particularly from high-profile figures, carry serious responsibilities under U.S. securities law.
The outcome of Musk’s appeal will be closely watched by the tech and financial sectors, given its implications for corporate governance, disclosure requirements, and shareholder protections in high-value acquisitions.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
