This is one of the most notable disputes involving a tech billionaire in recent years.

A shocking verdict has just been handed down in California, where a jury determined that Elon Musk made false and misleading statements to Twitter shareholders in the period leading up to the completion of the $44 billion acquisition.

According to lawyers representing the plaintiffs, the total potential compensation in this class-action lawsuit could reach $2.6 billion – one of the most notable securities disputes involving a tech billionaire in recent years.

These tweets shook the market.

The lawsuit, known as Pampena v Musk, was initiated in October 2022, shortly after Musk completed his acquisition of Twitter for $54.20 per share. However, even before that, his statements on social media had already caused market turmoil.

In May 2022, Musk unexpectedly announced the deal was “on hold,” citing doubts about the data on fake accounts, spam, and bots that Twitter had published. He demanded that company leaders prove that the percentage of unverified accounts was only around 5%, as reported to the SEC.

These tweets quickly created a ripple effect: Twitter’s stock plummeted nearly 10% in a single trading session. After four days of deliberation, the jury unanimously agreed that Musk’s statements on May 13 and 17 were “significantly false or misleading.”

Investors suffer losses, suspicions of price manipulation in the deal.

Former Twitter shareholders, including individual investors and options traders, argue that Musk deliberately pressured the board of directors to accept a sale of the company at a price lower than the initial offer.

They argued that at the time, Tesla’s stock price was falling, forcing Musk to sell more shares to raise capital for the deal. Therefore, driving down Twitter’s price would help him reduce the acquisition cost.

According to court documents, many investors sold shares below $54.20 due to being directly affected by Musk’s statements on social media and in interviews. The estimated losses are based on the stock price volatility during this period.

A “half-win, half-lose” verdict.

Although the jury acknowledged that Musk had provided false information that harmed some shareholders, they did not conclude that he had orchestrated an organized conspiracy to defraud investors.

Responding to the ruling, Musk’s legal team from Quinn-Emanuel Law Firm stated that this was merely “a minor setback” and affirmed that they would continue to appeal to defend their client.

Meanwhile, the plaintiffs emphasized that the lawsuit was not only aimed at Musk personally, but also served as a warning to the entire market. “This is a story about protecting ordinary investors, those with pension funds, savings, teachers, nurses, or firefighters,” lawyer Joseph Cotchett told the media.

Reportedly, after completing the acquisition, Musk implemented a series of major changes: renaming Twitter to X, restructuring its operating model, and successively merging the company with other projects in his ecosystem, including xAI and SpaceX.

These steps demonstrate the ambition to build a “super app” integrating social media, artificial intelligence, and space technology – an ambitious but also controversial vision.

While the ruling is seen as a major blow to his reputation, the financial impact on Musk may not be too significant. According to Bloomberg estimates, his net worth is currently around $650 billion.

In the coming period, the claims processing is expected to take approximately 90 days to establish, and several more months for authorities to complete the payments. This means that investors may only begin receiving partial compensation later this year.