A federal jury in California concluded Friday that Elon Musk misled Twitter shareholders in 2022 in an attempt to drive down the stock price before its $44 billion acquisition.
This verdict, delivered as part of a class action lawsuit, could cost the head of Tesla and SpaceX up to $2.6 billion in damages.
A strategy to renegotiate the purchase? The lawsuit, filed by Giuseppe Pampena on behalf of shareholders who sold their Twitter shares between mid-May and October 2022, accuses Musk of disseminating misleading information to artificially lower the stock price. According to the jury, he thus violated stock market rules prohibiting false statements that influence markets.
Key points included Musk's temporary suspension of the agreement in May 2022, demanding that Twitter prove its bot rate was well below 5%, as the platform claimed. This announcement caused the stock to plummet, giving Musk the opportunity to renegotiate the price or withdraw from the deal.
A forced buyout and a radical transformation After months of legal battle, Twitter finally sued Musk to force the transaction, which materialized in October 2022. Since then, Musk has renamed the social network "X", integrated it into his other companies (xAI, SpaceX), and profoundly changed its economic and editorial model.
Next steps: appeal or settlement? The exact amount of damages will be determined later, but the verdict paves the way for a record fine. Musk, known for his combative stances, could appeal or attempt an out-of-court settlement.
