Twitter ($TWTR) Buyout Manipulation Case

The court has ruled on whether the plaintiffs are certified as a class.

N.D. California

Court

3:22-cv-05937

Case number

05/13/2022

Class period Start

10/04/2022

Class period End

$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 for misleading statements about the Twitter deal, with potential recovery that could reach several billion dollars.
$TWTR investors can join this case to be notified about potential recovery.
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.

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 mention that he didn’t actually have the right to pause the deal over this. 

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.

On May 13, Musk said the deal was “temporarily on hold,” and $TWTR dropped 9.7%. As uncertainty continued, the stock kept falling.

Then, on July 8, Musk announced he was terminating the deal. By July 11, shares had fallen to $32.65 — down 27.6% over the period.

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

$TWTR investors can join to stay informed about possible compensation.

Case Type

US Securities Class Action

Case Status

Class Certification result

Alleged Offence

Misleading Statements,

Price manipulation,

Insider Trading,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Shareholder,

Influencer,

Investment Bank,

Service Provider

Security Type

Stocks

Trade Direction

Short

Shock Event Date

10/04/2022

Filing date

06/08/2023

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