Elon Musk to Testify in Twitter Shareholder Lawsuit

Shareholders accuse Musk of manipulating Twitter's stock price before $44 billion buyout

Published on Mar. 4, 2026

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Elon Musk is expected to take the stand in a shareholder trial in San Francisco, where he is accused of making false and misleading statements that drove down Twitter's stock price before he bought the social media platform for $44 billion in 2022. The lawsuit claims Musk violated federal securities laws by making statements carefully calculated to lower Twitter's share price.

Why it matters

This trial could have significant implications for Musk's reputation and legal standing, as well as the future of Twitter under his ownership. The outcome could set precedents around corporate takeovers and the responsibilities of high-profile executives when making public statements about companies they aim to acquire.

The details

The lawsuit was filed in October 2022 on behalf of Twitter shareholders who sold stock between May 13 and October 4, 2022. It alleges Musk made false claims, such as saying the Twitter deal was 'temporarily on hold' and that nearly 20% of Twitter accounts were 'fake,' which caused the stock price to plummet. The lawsuit argues Musk waived his right to examine Twitter's finances, yet still tried to renegotiate or back out of the deal through misleading statements.

  • Musk reached a deal to buy Twitter in April 2022.
  • On May 13, 2022, Musk declared the Twitter deal was 'temporarily on hold'.
  • In the following weeks, Musk continued making statements to try to delay or get out of the deal.
  • In July 2022, Musk said he would abandon the offer after Twitter failed to provide information about fake accounts.
  • On October 4, 2022, Musk offered to go through with the original $44 billion deal, which Twitter accepted.

The players

Elon Musk

The CEO of Tesla and the new owner of Twitter, who is accused of making false statements to manipulate Twitter's stock price before acquiring the company.

Twitter

The social media platform that Musk acquired for $44 billion in 2022 after a protracted legal battle.

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What’s next

Musk is expected to take the stand in the shareholder trial on Wednesday, March 6, 2026 to defend himself against the allegations.

The takeaway

This trial will test the limits of Musk's influence and whether he can be held accountable for statements made during a high-profile corporate acquisition. The outcome could set important precedents around executive conduct and shareholder protections in future takeover battles.