San Francisco Jury Finds Elon Musk Misled Investors During Twitter Takeover

Legal experts suggest this verdict marks a significant shift in accountability for the billionaire.

RMN News Legal Desk
New Delhi | March 21, 2026

SAN FRANCISCO – A federal jury delivered a unanimous verdict against tech mogul Elon Musk, finding that he intentionally misled investors through public statements made during his 2022 acquisition of Twitter.

The decision, according to a BBC report of March 21, reached after two days of deliberations, concludes that Musk’s claims regarding Twitter’s user metrics and his suggestions that he might withdraw from the $44 billion deal were deceptive. According to the verdict, these statements artificially deflated Twitter’s stock price by an estimated $3 to $8 per share between May and October 2022.

Financial Fallout for Shareholders

The class-action lawsuit was led by Brian Belgrave, a small-business owner from Oregon, who argued that investors suffered significant financial harm by relying on Musk’s public rhetoric. Belgrave testified that he felt “cheated” after selling thousands of shares at a loss in July 2022, under the impression that the deal would collapse.

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With the jury’s finding, individual investors within the class could now be poised to receive thousands of dollars in damages to compensate for their losses.

The “Bots” Controversy and Trial Testimony

The legal dispute centered on a period beginning in May 2022, when Musk began tweeting about “bots” and fake accounts, eventually claiming the acquisition was “on hold”. Although Twitter successfully sued to force Musk to complete the purchase at the original price in October 2022—after which he renamed the platform X—the jury determined his earlier comments were intentionally misleading.

During his testimony, Musk remained combative, arguing that the public “read too much” into his tweets. While he conceded, “If this was a trial on whether I’ve made stupid tweets, I’d say I’m guilty,” he maintained that he did not intend to deceive the market.

A “Clear Message” to Market Movers

Legal experts suggest this verdict marks a significant shift in accountability for the billionaire. While Musk successfully defeated a similar 2023 lawsuit involving Tesla shareholders, this jury took a different stance on his social media conduct.

“If you move the market with your words, you own the consequences,” said Monte Mann, a trial attorney at Armstrong Teasdale, noting that the verdict “sends a clear message” to high-profile executives regarding their public communications.

BBC reports that lawyers for both Musk and the investors have not yet issued formal comments following the decision.