X CEO Elon Musk has been found guilty of misleading Twitter shareholders by a Jury in California. A California jury on Friday largely sided with Twitter shareholders who accused billionaire Elon Musk of making false statements and intentionally driving down the social media company’s stock ahead of his $44 billion acquisition in 2022, but they absolved Musk of claims of engaging in a “scheme” to defraud investors.
“We are thrilled with the jury’s decision today, which we believe is the largest securities jury verdict in United States history,” Mark Molumphy, an attorney for the plaintiffs, said in a statement to CNN. “The jury sent a strong message that no one is above the law.”
In 2022, Musk agreed to acquire Twitter (now known as X) in a high-profile $44 billion deal that dominated global business news. Musk began buying Twitter stock early in the year and ultimately made a full cash offer, which the company’s board accepted, and the transaction was completed in late October 2022.
The acquisition was contentious: Musk publicly criticized Twitter’s handling of spam and bot accounts, delayed disclosures about his share purchases, and even tried to back out of the deal before ultimately closing it, though the exact timing and impact of these actions are subject to interpretation.
A class‑action lawsuit brought by former Twitter shareholders argued that Musk’s public statements, including tweets about the number of fake accounts and suggesting the deal was “on hold,” were misleading and harmed investors by driving down the company’s stock price as the acquisition unfolded. After a three‑week trial in federal court in San Francisco, a jury in March 2026 found Musk liable for misleading shareholders with some of those statements, concluding they materially affected stock value,
As per CNN, Musk plans to appeal the decision, according to lawyers for the billionaire at the firm Quinn Emanuel Urquhart & Sullivan, LLP, who noted separate, unrelated cases in Texas and Delaware where Musk recently won appeals.
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“We view today’s verdict, where the jury found both for and against the plaintiffs and found no fraud scheme, as a bump in the road. And we look forward to vindication on appeal,” lawyers for Quinn Emanuel said in a statement provided to CNN by a spokesperson.
The damages awarded by the jury are expected to amount to around $2.5 billion, depending on the number of people who submit claims to be part of the class, according to estimates from attorneys for the plaintiffs.
The verdict represents a significant legal and financial challenge for Elon Musk, highlighting the heightened scrutiny public figures face when navigating high-profile corporate transactions. Even though he was absolved of broader fraud claims, being found liable for misleading shareholders could have lasting implications for his reputation and influence in the business world. The ruling also underscores that actions and statements made in the context of major deals are subject to careful legal and regulatory review, reinforcing the importance of transparency and accurate communication.
Looking ahead, the appeal process offers Musk a potential avenue to mitigate the immediate consequences of the ruling, though it will likely prolong legal uncertainty and maintain public attention on his leadership decisions.