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Musk Misled Twitter Investors Before 2022 Buyout, Jury Says

Isaiah Poritz, Jef Feeley
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⚡ Quantum Brief
A federal jury ruled Elon Musk defrauded Twitter investors in 2022 by publicly disparaging the company to reduce his $44 billion acquisition price, concluding he intentionally misled shareholders. The verdict, delivered in San Francisco federal court, centered on Musk’s claims about fake accounts on Twitter (now X) and his attempt to abandon the deal, though jurors dismissed two of four fraud allegations. Musk’s legal team immediately announced plans to appeal the decision, arguing the tweets and statements were protected free speech or legitimate business concerns. The case hinged on Musk’s April–October 2022 tweets and public statements, which prosecutors argued artificially depressed Twitter’s stock value to pressure a lower buyout price. While the jury found partial liability, the rejected claims may limit potential financial penalties, though the ruling marks a rare legal setback for Musk in his high-profile acquisitions.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Elon Musk’s X:Elon Musk defrauded Twitter Inc. investors when he disparaged the company in 2022 in an effort to buy the social media platform for a lower price than his original $44 billion bid, a jury concluded. Jurors in federal court in San Francisco found Friday that Musk intentionally misled Twitter shareholders when he tweeted that the social network — now called X — had too many fake accounts and tried to back out of the deal. The jury rejected two of the four fraud claims. Musk’s lawyers vowed an appeal.

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Source: Bloomberg Technology

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