Twitter Shareholder Lawsuit Against Elon Musk Goes to Jury Over Alleged Deceptive Tactics in $44 Billion Deal
Key Takeaways
- ▸Closing arguments concluded in the shareholder lawsuit alleging Musk made calculated tweets to manipulate Twitter's stock price and avoid or renegotiate the $44 billion acquisition
- ▸The trial centers on disputes over the actual number of fake accounts on Twitter and whether Musk's bot claims were genuine concerns or pretexts for backing out
- ▸Musk's defense argues plaintiffs lack evidence of intentional fraud and that wanting to pay less for a deal does not constitute securities fraud
Summary
A civil trial in San Francisco has concluded closing arguments in a class-action lawsuit brought by Twitter shareholders against Elon Musk, alleging he engaged in a pattern of deceptive behavior to either renegotiate or back out of his $44 billion agreement to purchase the social media platform in 2022. The shareholders claim that Musk deliberately tweeted misleading statements, including one stating the deal was "on hold," to drive down Twitter's stock price as his own circumstances changed and the acquisition became financially burdensome. The core of the dispute centers on Musk's claims about the number of bot and spam accounts on Twitter—he contended the figure was at least 20%, far higher than the company's disclosed 5%—which he used as justification for attempting to withdraw from the purchase. Musk's legal team counters that there is insufficient evidence of intentional fraud and argues that simply wanting to pay less for an acquisition does not constitute criminal deception.
- The jury must now decide whether Musk's public statements and actions caused financial losses to thousands of Tesla shareholders
