Elon Musk Twitter Verdict Misled Investors Before $44 Billion Purchase A jury in California ruled that Elon Musk misled Twitter investors during the period leading up to his $44 billion acquisition of the social media company. The verdict, announced on Friday, found that Musk’s actions harmed shareholders but did not constitute a deliberate fraud scheme. The case, which centered on Musk’s public statements about the company’s user base and platform integrity, has significant implications for corporate accountability and investor protection. The lawsuit, Pampena v. Musk, was filed in October 2022 after Musk finalized his purchase of Twitter for $54.20 per share. He later rebranded the company as X, merged it with his artificial intelligence firm xAI, and integrated it with SpaceX, his aerospace company. The case originated from Musk’s initial bid to acquire Twitter in April 2022, which quickly faced scrutiny as he expressed doubts about the company’s claims regarding the prevalence of bots, spam, and fake accounts on its platform. Musk tweeted in May 2022 that his acquisition was “temporarily on hold” until Twitter’s CEO could verify the authenticity of its user base, citing the company’s reported 5% bot rate in SEC filings. Plaintiffs, including retail investors and options traders, argued that Musk’s public criticisms were part of a coordinated effort to pressure Twitter’s board into accepting a lower purchase price. They claimed his remarks were motivated by financial pressures at Tesla, which would require him to sell more shares to fund the acquisition. The plaintiffs’ attorneys emphasized that the case was not about Musk personally but about the broader impact on average investors, including 401(k) holders, pension funds, teachers, and public servants.#elon_musk #x #twitter #pampena_v_musk #quinn_emmanuel
