Yemen Herald Editorial 
A federal jury in California has determined that Elon Musk misled Twitter shareholders, contributing to a significant decline in the company’s stock price during his acquisition process. The verdict, delivered on March 21, 2026, in a class action securities lawsuit, could result in Musk facing billions of dollars in damages, as calculated by the jurors.
The case centered around two tweets Musk posted in May 2022, which the jury found contained false statements. These statements were deemed responsible for the drop in Twitter’s share price as Musk was preparing to finalize a $44 billion deal to purchase the platform. The lawsuit was initiated by investor Giuseppe Pampena on behalf of individuals who sold Twitter shares between mid-May and early October 2022.
During the three-week trial in a San Francisco federal court, which included Musk’s testimony, the jury concluded that Musk violated securities regulations that prohibit false and misleading statements that can adversely affect stock prices. A lawyer representing the plaintiffs estimated the potential damages at approximately $2.6 billion. However, the jury did not find Musk guilty of all fraud allegations, specifically ruling that he did not “scheme” to mislead investors.
Following the verdict, Musk’s legal team announced plans to appeal the decision, describing it as a “setback.” Musk, who acquired Twitter in late October 2022 and later rebranded it as X, did not publicly comment on the ruling. This verdict represents a rare legal defeat for Musk, who has often been able to navigate legal challenges successfully.
In a related context, Musk previously faced similar allegations regarding his tweets about Tesla in 2018, where he claimed to have secured funding to take the company private. A jury in 2023 cleared him of those charges within hours. Musk’s financial standing remains robust, with Forbes estimating his net worth at $839 billion, largely attributed to his holdings in Tesla and SpaceX.
About the Author
