Twitter ($TWTR) Jury Verdict: Musk Found Liable

$TWTR investors filed a claim against Elon Musk for allegedly using false public statements about the Twitter buyout to push shares lower and gain leverage to reduce the deal price. A jury found Musk liable at trial, with potential damages reaching several billion dollars.

Outline:

In 2022, Elon Musk agreed to buy Twitter for $44 billion, but soon after began publicly raising concerns about the number of fake accounts on the platform, suggesting the deal could be paused or even terminated. His comments led to significant volatility in $TWTR, with the stock dropping during the uncertainty. Investors later filed a lawsuit, arguing that Musk used these statements to gain leverage in renegotiating the deal. In 2026, a jury found that his remarks were misleading, with potential damages estimated at $2B–$2.6B.

Timeline:

• May 13, 2022: Musk said the Twitter deal was "temporarily on hold," citing unproven concerns about fake accounts. $TWTR dropped 9.7%.

• July 8, 2022: Musk announced he was terminating the deal entirely.

• July 11, 2022: $TWTR shares fell to $32.65, down 27.6% from the start of the period.

• October 4, 2022: Musk agreed to close the deal at the original $54.20 per share price.

• 2026: A jury found Musk liable for misleading statements about the deal, with potential damages estimated at $2B–$2.6B.

Background:

Between May 13, 2022, and October 4, 2022, Elon Musk repeatedly said the Twitter deal could be paused or canceled because of concerns about fake accounts. He questioned the company's claim that fewer than 5% of users were bots and suggested the deal couldn't move forward without proof.

Investors say Musk already knew this issue had been publicly discussed and that he had agreed to the deal without deep due diligence. They also argue he didn't disclose that he didn't actually have the right to pause the deal over this issue.

At the same time, declining Tesla stock may have been putting pressure on his financing, potentially giving him an incentive to delay or renegotiate the deal.

Based on these events, $TWTR investors filed a claim against Musk, alleging he falsely said the deal could be put on hold, used public statements about fake accounts and supposed contract breaches to pressure Twitter into accepting a lower price, and drove $TWTR down, harming investors who sold before Musk later agreed to close the deal at the original $54.20 price.

A jury has now found Musk liable, with potential recovery that could reach several billion dollars; the exact damages amount has not yet been determined.

What Can Investors Expect Now?

A jury found Musk liable for misleading statements about the Twitter deal, with potential recovery that could reach several billion dollars.

If you were damaged due to this situation, you can file for a payout and get your share. You can check if you are eligible and other details in the FAQ section.