Elon Musk Found Liable for Defrauding Twitter Shareholders in Federal Trial

A federal jury found Elon Musk guilty of defrauding Twitter shareholders by attempting to lower the company's stock price to renegotiate a $44 billion takeover. Musk was accused of falsely claiming Twitter underreported fake accounts. The verdict marks another instance of Musk's legal challenges with investors.

A federal jury in San Francisco has found Elon Musk liable for defrauding Twitter shareholders, determining that he attempted to decrease the social media company's stock price to renegotiate his $44 billion acquisition deal in 2022, according to Bloomberg News reports.

The jury's decision comes after Musk was accused of falsely alleging that Twitter misrepresented the number of fake and spam accounts on its platform, potentially impacting share values. Despite the allegations, Musk completed his acquisition of Twitter in October 2022, subsequently integrating it with his company SpaceX.

Elon Musk is known for facing shareholder disputes in court, and this trial followed similar legal challenges regarding his business dealings and claims. Musk's legal teams continue discussions to settle a separate SEC lawsuit alleging he delayed disclosure of Twitter stock acquisitions to gain lower purchase prices.

(With inputs from agencies.)