Elon Musk misled Twitter investors, plaintiffs allege as trial continues

A federal class-action in San Francisco accuses Elon Musk of making false or misleading public statements during the months leading up to his $44 billion acquisition of Twitter (now X), claims that investors say depressed the company’s share price and harmed shareholders; the trial is ongoing and no final jury verdict has been widely reported.

Plaintiffs contend that Musk’s public posts — including remarks about the prevalence of fake or spam accounts and a tweet that the deal was “temporarily on hold” — were intended or had the effect of lowering Twitter’s market value between May and October 2022, altering trading decisions and causing losses for some investors. The suit examines the period around Musk’s April 2022 bid and the eventual closing in October 2022 at approximately $54.20 per share.

Evidence presented at trial includes social-media messages, expert testimony on price impact and trading patterns, and internal communications proffered by both sides. Musk has taken the stand to defend his conduct, arguing that his statements reflected genuine business concerns rather than a scheme to manipulate price, and that markets often interpret his remarks more broadly than intended.

The litigation sits alongside other regulatory and investor actions relating to Musk’s Twitter purchase and disclosure practices, including SEC scrutiny over the timing of filings and additional shareholder suits. Observers say the case highlights broader questions about how senior executives use social platforms and the legal boundaries of market-related commentary.

Legal analysts note that a plaintiff victory with substantial damages could pressure valuations for X and raise reputational and financial costs for Musk, but any major award would likely face lengthy appeals. Market participants are watching the trial for precedent-setting implications about executive communications, disclosure obligations and investor remedies.