REGULATORY · COMPETITIVE · USA
Jury finds Musk responsible for investor losses
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A California jury found Elon Musk responsible for Twitter investors' stock dropping during his 2022 bid to buy the company.
Why it matters
A federal jury in San Francisco returned the verdict after a trial focused on roughly April–October 2022. The case examined Musk's repeated public posts alleging Twitter was rife with bots and a May 2022 tweet saying the buyout was "temporarily on hold." Twitter's shares fell as much as 20% within 24 hours and remained volatile for months. Plaintiff investors said they sold shares below $54.20 during the period under scrutiny. Musk repeatedly denied wrongdoing during the trial.
Implications
- · Twitter's share price fell up to 20% within 24 hours and experienced months of volatility during the period under scrutiny.
- · Plaintiff investors sold shares at prices below $54.20, realizing losses during the April–October 2022 window.
- · The jury recorded a court finding that assigns responsibility for those realized investor losses.
Who is affected
- · Investors who sold Twitter shares during April–October 2022
- · Plaintiff shareholders in the lawsuit
- · Corporate legal teams handling securities litigation
Source
Topics
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