A California jury delivered a major verdict Friday that could have huge financial consequences for Elon Musk. Jurors concluded that Musk misled Twitter investors during the lead up to his massive $44 billion takeover of the social media company.
The case centered on Musk’s statements in 2022 while he was trying to buy Twitter, a deal that ultimately reshaped one of the most influential online platforms. After completing the purchase, Musk famously rebranded the platform and renamed Twitter to X.
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The class action lawsuit argued that investors were harmed by misleading statements made during the chaotic months when Musk was negotiating the acquisition. According to multiple reports, the jury agreed that those statements crossed the line. Lawyers representing the investors say the potential financial impact could be enormous.
Attorneys for the plaintiffs told CNBC that total damages in the case could reach as much as $2.6 billion. Even with the jury’s finding, Musk was not found responsible for every accusation brought in the lawsuit. According to CNBC, he was cleared of some of the fraud related allegations that had also been part of the case.
Still, the ruling sends a strong message about how powerful figures communicate with investors during major corporate deals. The plaintiffs’ legal team emphasized that the case was about protecting everyday investors rather than targeting Musk personally. “This is a great example of what you cannot do to the average investor — people that have 401ks, kids, pension funds, teachers, firemen, nurses,” an attorney for the Twitter investors told CNBC outside a San Francisco courthouse.
“That’s what this case was all about. This was not about Musk. It was about the whole operation.” The lawsuit itself dates back to October 2022, shortly after Musk completed the purchase of Twitter at $54.20 per share.
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That acquisition was one of the most talked about tech deals in recent history, unfolding with dramatic negotiations and public disputes. During the takeover process Musk frequently used social media to comment on the deal and on Twitter’s operations, moves that critics argued influenced investor expectations.
Those communications became a central issue in the case. The verdict now opens the door for possible financial penalties that could run into the billions depending on how damages are calculated. For Musk, who leads Tesla and SpaceX and has become one of the most recognizable figures in the tech world, the decision adds another high profile legal chapter to the already dramatic story behind the Twitter takeover.