A jury in San Francisco has ruled that Elon Musk intentionally misled investors regarding Twitter Inc., now known as X, as he sought to reduce the company's stock price before his acquisition. The decision, reached on Friday, determined that Musk's public statements about the number of fake accounts on the platform constituted fraud, although two of the four related claims were dismissed by the jury.
Musk's unsolicited offer to purchase Twitter for $54.20 per share in 2022 valued the company at around $44 billion, while its market capitalization at that time was approximately $36 billion. After attempts to back out of the deal, alleging that Twitter misrepresented its bot count, Musk ultimately proceeded with the acquisition following legal action from the company.
The jury's findings suggest that Musk could face damages estimated at up to $2.6 billion. The exact amount to be paid to individual investors will be determined later as shareholders file claims. Musk’s legal team has confirmed intentions to appeal the ruling.