ChainCatcher report: A U.S. federal jury in San Francisco ruled locally that American entrepreneur Elon Musk intentionally depressed the stock price of Twitter (now rebranded as X) during his 2022 acquisition, misleading investors and bearing responsibility for it. However, the jury rejected allegations that Musk participated in a scheme to defraud investors. The lawsuit was filed before Musk took over Twitter. The jury was tasked with determining whether two tweets Musk posted in May 2022 and his statements on a related podcast constituted "intentional fraud against Twitter shareholders." After nearly four days of deliberation, the nine-member jury concluded that Musk was responsible for misleading investors through the two tweets, but his podcast comments did not constitute deception, and he did not intentionally "scheme" to defraud investors. This ruling represents a rare legal setback for Musk, whose legal team has stated they will appeal. Musk announced in April 2022 his intention to acquire Twitter for $44 billion, then terminated the acquisition agreement on July 8. Twitter sued Musk on July 12, accusing him of refusing to complete the agreed-upon purchase and causing the company substantial losses.
Elon Musk Found Liable for Misleading Investors During Twitter Acquisition
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Summary
A U.S. federal jury in San Francisco found Elon Musk liable for misleading investors during the 2022 Twitter acquisition by downplaying its stock price. The ruling followed a four-day deliberation on whether Musk’s May 2022 comments constituted intentional fraud. The verdict, a rare legal setback, does not substantiate claims of a fraud scheme. Musk plans to appeal. On-chain data continues to show sustained interest in altcoins to watch as market reactions unfold.
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