Musk Likely To Owe Billions For Misleading Investors Re Twitter Purchase
A jury on Friday found Elon Musk misled investors by deliberately driving down Twitter’s stock price before he acquired the social media company.
Twitter shareholders sued Musk in 2022, accusing him of having lowered the value of their investments with tweets designed to force the company to renegotiate his $44 billion offer of purchase. Musk had tweeted that the site was full of fake accounts and that the deal was “temporarily on hold,” The New York Times reported. “Those posts prompted some shareholders to unload their stakes in the company at significantly lower prices than they would have gotten when the deal closed later that year, according to the lawsuit,“ The Times said.
The jury found that Musk was liable for misleading investors but that he did not intentionally “scheme” to defraud investors, NBC News noted.
“Because it is a class action case, it is not clear what amount in damages Musk will have to pay, but it is likely in the billions,” NBC News calculated.
Couldn’t happen to a more deserving guy.