Elon Musk faces billions in damages over Twitter deal tweets

Elon Musk is facing the possibility of billions of dollars in damages after a US jury found that some of his 2022 tweets misled investors during his acquisition of Twitter (now X).

The ruling stems from a class-action lawsuit filed by shareholders who sold their Twitter stock between May and October 2022. 

They argued that Musk’s public statements about the deal—including comments suggesting the acquisition was “on hold” due to concerns over fake accounts—artificially pushed the company’s share price down.

In April 2022, Musk announced plans to purchase Twitter for $44 billion at $54.20 per share. 

However, by May, he posted a series of tweets indicating uncertainty about the deal, sparking market volatility. 

Twitter’s stock price declined during this period as Musk attempted to withdraw from the agreement before ultimately completing the acquisition in October 2022 at the original price.

The jury concluded that at least two of Musk’s tweets were false or misleading and had a significant impact on Twitter’s stock price. 

While broader fraud allegations were dismissed, the decision opens the door for potential damages estimated between $2.5 billion and $2.6 billion.

The case could result in compensation for thousands of investors who claim they sold shares at a loss based on Musk’s statements.

Musk’s legal team has said it plans to appeal the verdict, calling the decision a setback. 

The case also adds to Musk’s ongoing legal challenges related to his public communications, including prior disputes with regulators.

The outcome highlights the growing scrutiny of high-profile executives and their social media activity, especially when public statements can influence financial markets on a global scale.