This browser does not support the Video element.
Twitter shareholder case accusing Musk of driving down stock goes to jury
Closing arguments concluded Tuesday in a trial pitting Elon Musk against Twitter shareholders who say the world’s richest man 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 in 2022.
SAN FRANCISCO - A jury is now deliberating whether Elon Musk misled investors with comments he made while attempting to buy Twitter in 2022.
Jurors must decide whether Musk should be held liable for statements that plaintiffs say affected the company’s stock price during the $44 billion acquisition process. The deal was ultimately completed later that year.
Claims of market impact
What they're saying:
Plaintiffs argue Musk made public statements suggesting that bots, spam or nonhuman accounts made up 20% or more of Twitter’s users — a claim they say could have depressed the company’s value, which relies heavily on advertising revenue tied to user numbers.
In closing arguments, plaintiffs’ attorney Mark Molumphy said Musk’s comments harmed the company.
"So [he] did here what he did on the stand. He trashed the company, he trashed the executives, tanked the stock, then he fled the scene," Molumphy told jurors.
Plaintiffs, who are shareholders, say they lost money as a result of the declining stock price following Musk’s remarks.
This browser does not support the Video element.
Elon Musk takes the stand in Twitter shareholder trial
Elon Musk on Wednesday took the stand to testify in a trial that alleges that he violated federal securities laws by making false, public statements designed to lower Twitter's stock price ahead of his purchase of the company.
Defense pushes back
The other side:
Musk’s legal team argued he believed his statements about bot activity were accurate based on the information available at the time and therefore did not commit securities fraud.
"[Plaintiffs] have not proven there was a plot, not one shred of evidence that Mr. Musk purposely drove down the stock price," defense attorney Michael Lifrak said. "They haven’t proven fraud."
Defense attorneys also urged jurors to set aside any personal opinions about Musk.
What comes next
After closing arguments, the judge issued final instructions to the jury, which is composed of five men and three women.
Jurors will determine both liability and any potential damages. It is unclear how much money is at stake.
A verdict is expected after deliberations conclude.