Jury Rules Musk Fraud on Twitter Investors

🔑 Enhanced Key Takeaways

• •The jury specifically identified two tweets as misleading, most notably the May 13, 2022 post claiming the deal was 'temporarily on hold,' which caused a nearly 10% drop in Twitter's stock price in a single session.
• •While found liable for misleading statements, the jury rejected the broader 'scheme' allegation, concluding that Musk did not intentionally orchestrate a plan to tank the stock for renegotiation purposes.
• •The damages are calculated on a 'per share per day' basis (ranging from $3 to $8), creating a complex payout structure for investors who sold between May and October 2022, with total liabilities estimated between $2.1 billion and $2.6 billion.
• •The verdict coincides with separate settlement negotiations between Musk and the SEC over his 11-day delay in disclosing his initial 5% stake, a move intended to de-risk a future SpaceX IPO.
• •Trial testimony revealed that Musk had waived his right to conduct formal due diligence before signing the $44 billion agreement, a fact the jury found rendered his subsequent public claims about 'bot audits' misleading to the market.

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