REGULATORY · COMPETITIVE · USA
California jury finds Musk misled investors
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A California jury found that Elon Musk misled investors with public statements that depressed Twitter's stock price ahead of his purchase of the company.
Why it matters
The jury's finding applies to a certified class action covering investors who sold Twitter shares during the period when Musk's statements depressed the stock price. The jury rejected claims of a larger scheme but found Musk liable for the public statements. Damages have not yet been set; plaintiffs' lawyers have asserted claimed damages up to $2.6 billion. Quantification, allocation, and any payments will be determined in follow-on court proceedings or settlement negotiations.
Implications
- · Creates an enforceable damages obligation for Musk to the certified class of investors who sold shares during the relevant period.
- · Plaintiffs' counsel have asserted claimed damages up to $2.6 billion, establishing the scale of potential liability to be quantified by the court.
- · Court proceedings or settlement will determine payment amounts and the mechanism for distributing any award to class members.
Who is affected
- · Members of the certified class of Twitter investors who sold shares during the relevant period
- · Elon Musk (defendant and potential payor)
- · Plaintiffs' and defense legal teams
What to watch
- · Court proceedings to determine damages for the certified class
Source
Topics
Law & Public Safety Court Rulings Technology & Innovation Big Tech Finance & Banking Capital Markets