On Tuesday, A lawyer for former Twitter investors told a San Francisco federal jury that Elon Musk deliberately undermined the company in 2022 by publicly casting doubt on the number of fake accounts on the platform.
Shareholders Allege Musk Drove Down Stock
Attorney Mark Molumphy argued Musk “trashed the company” and its leadership, adding that his repeated claims that bots could far exceed Twitter’s disclosed 5% rattled markets and pushed shares lower, Reuters reported.
The lawsuit covers investors who sold stock between May and October 2022, when Musk suggested the deal was “on hold” and even warned that it “cannot go forward” without clarity on bot figures.
Musk’s Defense: No Fraud, Just Concerns
Musk’s attorney, Michael Lifrak, countered that the billionaire had legitimate concerns about spam accounts and was trying to assess the business.
“Two tweets and a podcast does not equal securities fraud,” Lifrak told jurors, arguing that plaintiffs failed to prove intent to deceive.
He maintained that stock movement alone does not establish fraud.
Jury Weighs Fraud, Intent And Damages
Jurors are now deciding whether Musk’s statements were misleading and part of a scheme to manipulate Twitter’s share price. If found liable, they will determine damages.
Musk ultimately completed the acquisition in October 2022 for $44 billion. He later rebranded Twitter as X, which was acquired by his space venture company, SpaceX, last month.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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