"The jury cited two of Musk's tweets, from May 13th and May 27th, 2022, as materially false or misleading, causing some investors to sell shares in Twitter at values below the $54.20 per share bid."
"Musk testified that he didn't believe his posts would spook markets, but acknowledged, 'If this was a trial about whether I made stupid tweets, I would say I'm guilty.'"
"While finding that Musk did not engage in a specific scheme to defraud shareholders, the jury's ruling could lead to damages as high as $2.6 billion."
"The deal cannot move forward until Twitter's CEO provides proof that spam and fake accounts represent less than 5% of users, as Musk claims the actual number could be much higher."
A California jury found Elon Musk misled Twitter investors prior to his $44 billion acquisition in 2022. Musk's tweets were deemed materially false or misleading, prompting some investors to sell shares below the bid price. Although the jury did not find a specific scheme to defraud, damages could reach $2.6 billion. Musk's attorneys plan to appeal. The deal was temporarily on hold due to concerns over the accuracy of Twitter's user account claims, which Musk argued were inflated. He initially attempted to back out of the deal but ultimately closed it at the original price.
Read at www.theverge.com
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