Elon Musk case concluded: $3-8 loss per share

Elon Musk‘s in 2022 Twitter acquisition The lawsuit filed due to the tweets he made during the process was concluded. The jury in the USA ruled that Musk’s statements about fake accounts caused losses to investors. According to the calculation, investors lost between $3 and $8 per share per day.

In the class-action lawsuit in federal court in San Francisco, the jury found some of Musk’s tweets misleading. In particular, the post he posted on May 13, 2022, in which he stated that the purchasing process was “temporarily suspended” due to fake accounts, played a critical role. Following this announcement, Twitter shares fell significantly.

According to the case file, Musk faced a loss in value in Tesla shares after his $44 billion purchase offer. Investors claimed that Musk deliberately suppressed Twitter shares with his statements regarding the bot rate. The aim was to renegotiate the agreement or exit completely.

Jury rules that Elon Musk’s tweets in 2022 influenced the market

The jury accepted a significant portion of these allegations. In particular, Musk’s statement that the rate of fake accounts on the platform could be over 20 percent received a direct response in the market. In response, Musk stated in court that these posts reflected his own views and argued that Twitter management did not provide accurate information about the number of bots.

The court estimated investor losses at approximately $3 to $8 per share per day. The total compensation amount has not yet been determined. However, this range raises the possibility of a payment worth billions of dollars.

This case is Musk’s Twitter acquisition It was recorded as one of the many legal topics he encountered during his process. During the same period, Musk was also sued for late reporting of his share purchase in the company. Compensation disputes with former Twitter executives were also taken to court, and some of these files were later closed by compromise.