Musk Defends Twitter Deal Amid Lawsuit Alleging Deception

Billionaire testifies in civil trial over accusations he violated securities laws during $44 billion acquisition

Published on Mar. 5, 2026

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Elon Musk took the stand in a San Francisco jury trial to defend himself against a class-action lawsuit filed by Twitter shareholders who allege he engaged in a pattern of deceptive behavior that misled investors as he attempted to back out of his $44 billion deal to buy the social media platform. Musk maintained the deal merited renegotiation or termination, insisting Twitter's board duped him about the percentage of fake accounts on its platform.

Why it matters

The high-profile case centers on allegations that Musk violated federal securities laws while taking steps to drive down Twitter's stock price in an attempt to either blow up the deal or negotiate a lower sale price. The outcome could have significant implications for Musk's reputation and future business dealings.

The details

The civil trial revolves around a lawsuit filed just before Musk took control of Twitter, the social media platform he renamed X, in October 2022, six months after agreeing to buy the company for $44 billion. Musk maintained he was justified in seeking to renegotiate or terminate the deal, claiming Twitter's board had duped him about the percentage of fake accounts on its platform. When asked if he had threatened Twitter's board, Musk said "There were a lot of threats going back and forth from both sides" and that he was "pretty upset" with the board for allegedly engaging in fraud.

  • The civil trial in San Francisco began on March 5, 2026.
  • Musk took control of Twitter, now renamed X, in October 2022.
  • Musk agreed to buy Twitter for $44 billion in April 2022.

The players

Elon Musk

The world's richest man, who agreed to buy Twitter for $44 billion in April 2022 before later attempting to back out of the deal.

Twitter

The social media platform that Musk renamed X after completing his $44 billion acquisition in October 2022.

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What they’re saying

“There were a lot of threats going back and forth from both sides. I was pretty upset with the Twitter board because I felt they had engaged in fraud.”

— Elon Musk (newser.com)

What’s next

Musk is scheduled to continue his testimony in the trial on Thursday.

The takeaway

This high-profile case highlights the acrimony and legal battles surrounding Musk's tumultuous attempt to acquire Twitter, and the outcome could have significant implications for the billionaire's reputation and future business dealings.