A California jury found Elon Musk liable for misleading Twitter investors through his tweets about bot accounts during the acquisition period, which artificially depressed the stock price. The class action lawsuit could result in damages reaching up to $2.6 billion for affected investors. While the jury rejected claims of a larger fraudulent scheme, it determined Musk's public statements constituted investor fraud.
Background
This case stems from Musk's 2022 acquisition of Twitter, during which he repeatedly questioned the platform's bot account statistics while negotiating the purchase. Securities laws prohibit executives from making materially misleading statements that could affect stock prices.
- Source
- Ars Technica
- Published
- Mar 21, 2026 at 06:27 AM
- Score
- 6.0 / 10