Judge Upholds Verdict That Musk Defrauded Twitter Investors

US District Judge Charles Breyer has denied Elon Musk’s attempt to overturn a jury verdict from March 2026, which found that he defrauded Twitter investors during his $44 billion takeover of the platform in 2022. The court upheld the jury’s determination related to Musk’s misleading 13 May tweet about the deal being on hold due to concerns about bots, while granting a minor concession regarding a separate 17 May tweet. Investors allege that damages could total up to $2.6 billion, and the judge also approved the awarding of prejudgment interest.

A federal judge has upheld a jury’s conclusion that Elon Musk misled Twitter investors during his acquisition of the social media platform in 2022. US District Judge Charles Breyer rejected Musk’s motion to overturn the verdict in most aspects during a ruling made on Monday.

In March, a San Francisco jury determined that two of Musk’s tweets from May 2022 concerning the deal and Twitter’s spam bot statistics were materially false or misleading, which led to significant investor losses potentially amounting to $2.6 billion.

“Buyer’s remorse is not an exception to the securities laws,” Breyer stated, emphasizing that securities laws fundamentally revolve around the principle of trust. The judge highlighted substantial evidence indicating that Musk’s tweet on 13 May—which claimed the acquisition deal was on hold pending further information on bots—was factually inaccurate.

Breyer referenced testimony from one of Musk’s bankers, who expressed surprise at the tweet, noting that Musk had never actually paused the deal. The judge suggested that the jury could infer Musk had an ulterior motive to withdraw from the agreement, using concerns about spam accounts as a pretext.

In a narrow victory for Musk, Breyer agreed that there was insufficient evidence to demonstrate that a separate tweet from 17 May caused a market loss for investors. Musk’s legal team did not immediately respond to inquiries regarding the ruling.

### The Bot Pretext: A Four-Year Saga

This case stems from Musk’s tumultuous acquisition of Twitter, which began with his agreement to purchase the company and his subsequent attempts to withdraw from the deal by citing the presence of spam accounts. Twitter filed a lawsuit to enforce the agreement, culminating in Musk completing the acquisition at a price of $54.20 per share, after which he rebranded the platform to X.

In October 2022, investors filed a lawsuit asserting that Musk intentionally deflated the stock price to either renegotiate or abandon the acquisition. While the jury concurred that Musk had misled the market, it did not support the broader assertion of a calculated scheme.

Breyer also dismissed Musk’s more flamboyant assertions, such as the claim that jurors mocked him by inscribing “$4.20” in blue ink on the verdict form. The judge clarified that this number alluded to cannabis and also pointed out that the jury had cleared Musk on two additional claims.

### Musk’s Burgeoning Legal Challenges

This ruling adds yet another layer to Musk’s extensive legal troubles. Recently, he settled a separate SEC case regarding a late disclosure of his initial Twitter stake for $1.5 million. Musk’s “funding secured” debacle regarding Tesla previously led to SEC fraud charges in 2018.

He is also engaged in a contentious trial against Sam Altman concerning OpenAI, all while managing the newly public SpaceX. The tweets that contributed to Musk’s legendary status continue to produce substantial legal expenses.

The granted prejudgment interest could increase the total amount owed even further. For someone with a net worth exceeding one trillion dollars, the financial implications might be manageable, but the ruling substantiating that he defrauded investors poses a far more significant reputational challenge.

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