Jury finds Elon Musk's 'stupid tweets' caused Twitter investors' losses
A California jury determined that Elon Musk misled Twitter investors before making a $44 billion deal to buy the company in 2022. Musk's attorneys are expected to file an appeal, as damages could reach as high as $2.6 billion.
Why it matters
This ruling highlights the impact that Musk's social media activity can have on financial markets and the importance of transparency for public company executives.
Key Points
- 1Elon Musk found liable for misleading Twitter investors
- 2Jury cited two of Musk's tweets as causing investor losses
- 3Musk admitted his tweets were 'stupid' but did not believe they would spook markets
- 4Damages could reach up to $2.6 billion, according to plaintiff attorneys
Details
A California jury has determined that Elon Musk's tweets about his plans to take Twitter private in 2022 misled the company's investors, causing them losses. While the jury found that Musk did not engage in a specific scheme to defraud shareholders, they cited two of his tweets as being the cause of the investors' losses. Musk had testified that he did not believe his 'stupid tweets' would spook the markets, but the jury disagreed. Musk's attorneys are expected to file an appeal, as the damages could reach as high as $2.6 billion according to the plaintiff attorneys.
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