A California jury has found Elon Musk liable for misleading investors prior to his $44 billion acquisition of Twitter, now known as X, in 2022, resulting in a decline in the company’s stock price. The verdict, delivered on Friday, concludes a case brought by a group of investors, with the trial commencing earlier this month in San Francisco.
The legal challenge centered on claims that Musk intentionally disseminated information that negatively impacted Twitter’s share value before completing the takeover. Although Musk’s legal team argued he was sharing legitimate concerns and had no intention of manipulating the stock, a former advisor to Donald Trump testified that he did not perceive Musk’s statements as having a detrimental effect on investors.
https://hvg.hu/kkv/20220513_twitter_musk_felfuggesztes
“We are pleased with the jury’s decision today. They sent a strong message that no one is above the law,” stated Mark Molumphy, legal counsel for the investors. His colleague, Joseph Cotchett, added that the ruling represents a significant victory.
The jury did not find Musk guilty on all counts, determining that he did not intentionally aim to mislead shareholders. However, they did find him responsible for misleading investors, entitling them to damages.
The exact amount Musk will be required to pay remains to be determined. However, according to reports, investors were awarded between $3 and $8 per share for each day they held the stock, potentially totaling approximately $2.5 billion, as estimated by the investors’ attorneys. This figure comes as Musk recently became the first person to surpass $800 billion in net worth, demonstrating the relative scale of the potential payout.
