A federal jury in San Francisco found Elon Musk liable for misleading Twitter shareholders during the months leading up to his $44 billion acquisition of the social media company, according to the verdict delivered on March 20, 2026. Plaintiffs’ attorneys estimate total damages at approximately $2.6 billion, with the jury awarding shareholders between $3 and $8 per share per day for losses tied to Musk’s public statements.
- A nine-member federal jury ruled on March 20, 2026 that Elon Musk’s tweets on May 13 and May 17, 2022 were materially false or misleading, causing billions in shareholder losses during the Twitter acquisition.
- Plaintiffs’ attorneys estimate total damages at $2.6 billion, split between approximately $2.1 billion in stock losses and $500 million in options losses.
- The jury absolved Musk of broader fraud scheme claims, finding that while his statements misled investors, he did not execute a deliberate scheme to defraud them.
What the Jury Found in the Musk Twitter Investor Trial
The nine-member jury deliberated for nearly four days before reaching its verdict in the case, Pampena v. Musk, which was filed in October 2022 in the U.S. District Court for the Northern District of California. The trial lasted nearly three weeks, beginning on March 2, 2026. Jurors unanimously found that Musk’s tweets on May 13 and May 17, 2022 were materially false or misleading to investors who held or traded Twitter stock during that period.
The May 13 tweet, in which Musk stated the Twitter acquisition was “temporarily on hold” pending a review of bot and spam accounts, was central to the case. During testimony, Musk acknowledged the tweet was “may not be my wisest tweet” and said it “probably qualifies” as among his worst if it led to a trial, Fortune reported. A second tweet on May 17 was also found to be misleading, though the jury absolved Musk of liability for a statement he made on a podcast, ruling it was opinion rather than a factual claim.
The jury rejected two of the four fraud claims against Musk. While he was found to have made false and misleading statements that harmed shareholders, the jury concluded he did not engage in a specific scheme to defraud investors.
How the Twitter Stock Price Collapsed During Musk’s Acquisition
Twitter’s stock price fell as much as 40% below Musk’s original offer price of $54.20 per share during the turbulent six-month period when he repeatedly signaled he might walk away from the deal. Shares dropped to $32.52 at their lowest point, according to court filings. Former Twitter shareholders, including retail investors and options traders, argued that Musk’s public comments were designed to pressure the company’s board to sell at a lower price.
The plaintiffs in the class action suit said they sold shares below $54.20 in direct response to Musk’s posts and press interview comments. Musk testified that he could not control whether people sold their stock and maintained that Twitter’s leadership had misrepresented the platform’s bot account numbers.
What the Verdict Means for Shareholders and What Happens Next
Plaintiffs’ attorney Joseph Cotchett said after the verdict, “Just because you’re a rich and powerful person, you still have to obey the law, and no man is above the law.” Co-counsel Mark Molumphy added, “He knew what he was doing,” and estimated total damages at $2.6 billion, consisting of about $2.1 billion in stock losses and $500 million in options losses, according to PBS News.
Musk’s legal team declined to comment upon leaving the courthouse. Musk can appeal the verdict. Plaintiffs’ attorneys said it will take about 90 days to set up claims administration, followed by several additional months for the government to process claims and for investors to begin receiving payouts. The case is one of the largest shareholder fraud verdicts against an individual in recent years, and the outcome could influence how courts handle high-profile corporate accountability cases going forward.
Frequently Asked Questions
How Much Could Elon Musk Owe Twitter Shareholders?
Plaintiffs’ attorneys estimate total damages at approximately $2.6 billion, consisting of about $2.1 billion in stock losses and $500 million in options losses. The jury awarded shareholders between $3 and $8 per share per day in damages.
What Did Elon Musk Say That Misled Twitter Investors?
The jury found that Musk’s May 13, 2022 tweet stating the Twitter deal was “temporarily on hold” and a May 17 tweet were materially false or misleading. Both tweets drove down Twitter’s stock price during the months before his $44 billion acquisition closed.
Can Elon Musk Appeal the Twitter Investor Verdict?
Yes, Musk’s legal team can appeal the verdict. Plaintiffs’ attorneys said it will take about 90 days to set up claims administration, followed by several months for processing before investors begin to recoup losses.
