Jury finds Elon Musk misled investors during Twitter purchase

Musk absolved of some fraud claims, but liable for driving down Twitter's stock price

Mar. 21, 2026 at 5:03pm by Ben Kaplan

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A jury has found Elon Musk liable for defrauding investors by deliberately driving down Twitter's stock price in the months leading up to his $44 billion acquisition of the social media company in 2022. However, the jury absolved Musk of some fraud allegations, finding that he did not 'scheme' to mislead investors. The civil trial centered on a class-action lawsuit filed before Musk took control of Twitter, which he later renamed X.

Why it matters

This case highlights the legal consequences for powerful individuals who make misleading statements that impact the stock market. The jury's verdict sends a strong message that no one is above the law, even billionaires like Musk. The outcome could have broader implications for how social media influencers and business leaders are held accountable for their public statements.

The details

The jury awarded shareholders between $3 and $8 per stock per day in damages, amounting to around $2.1 billion in stock and $500 million in options. While the jury found Musk liable for misleading investors with two tweets, including one stating the Twitter deal was 'temporarily on hold,' they absolved him of fraud for a statement he made on a podcast, ruling it was an opinion. Much of the trial focused on Musk's claims about the number of bots on Twitter, which he used as a reason to try to back out of the purchase.

  • The civil trial in San Francisco federal court began on March 2, 2026.
  • The nine-person jury returned the verdict after nearly four days of deliberation.
  • Musk's tweets that were found to be misleading were posted on May 13, 2022.

The players

Elon Musk

The CEO of Tesla and the billionaire who acquired Twitter for $44 billion in 2022.

Parag Agrawal

The former CEO of Twitter.

Ned Segal

The former CFO of Twitter.

Mark Molumphy

An attorney representing the plaintiffs in the class-action lawsuit against Musk.

Monte Mann

A business litigation lawyer who was not involved in the case but commented on the verdict.

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What they’re saying

“It's an important victory, not just for investors of Twitter, but for the public markets. I think the jury's verdict sends a strong message that just because you're a rich and powerful person, you still have to obey the law, and no man is above the law.”

— Mark Molumphy, Attorney for the plaintiffs

“Last month, Elon won the largest appellate victory in this country's history after getting an unfair shake at the trial level. Earlier today, in a Texas court, he won another appellate victory in which the trial judge was reversed. We view today's verdict, where the jury found both for and against the plaintiffs and found no fraud scheme, as a bump in the road. And we look forward to vindication on appeal.”

— Elon Musk's legal team

“The verdict sends a clear message — if you move the market with your words, you own the consequences. The law has always prohibited misleading statements. What's new is the scale and speed. When one person can move billions with a tweet, the consequences of those statements are amplified — and juries are starting to take that seriously.”

— Monte Mann, Business litigation lawyer

What’s next

Musk's legal team has indicated they will appeal the verdict, citing previous appellate victories. The judge in the case will also need to determine the final damages amount owed to the plaintiffs.

The takeaway

This case underscores the growing scrutiny and legal accountability that high-profile business leaders face for their public statements, especially on social media platforms where their words can quickly move markets. It serves as a warning that even the world's wealthiest individuals are not immune from the consequences of misleading investors.