Amber GerardA U.S. federal judge has rejected Elon Musk’s attempt to overturn a jury verdict that found he misled Twitter investors during his 2022 takeover of the social media platform.
The decision allows the investor class-action lawsuit to move forward and keeps most of the jury’s findings in place.
Judge Rejects Musk’s Motion
U.S. District Judge Charles Breyer ruled that the evidence presented during the trial supported the jury’s March 2026 verdict. The court denied Musk’s request to dismiss the verdict and also refused to decertify the class of investors who brought the lawsuit. The judge approved prejudgment interest for investors, which could increase the total amount of damages if they ultimately prevail.
Why Investors Sued Elon Musk
The lawsuit centers on Musk’s $44 billion acquisition of Twitter in 2022. Investors claimed that Musk made misleading public statements about fake and spam accounts on the platform after agreeing to buy the company. They argued these comments caused Twitter’s stock price to fall, allowing Musk to renegotiate the deal while shareholders suffered financial losses.
Court Partially Sided With Musk
Although the judge upheld most of the verdict, he ruled that Musk was not legally liable for one of the challenged tweets posted on May 17, 2022, because there was not enough evidence showing it affected Twitter’s share price. However, the court found substantial evidence that Musk’s May 13 tweet, which said the deal was “temporarily on hold,” misled investors and contributed to a decline in the company’s stock.
Billions in Potential Damages
Lawyers representing the investors have estimated that damages could total about $2.5 billion to $2.6 billion. The exact amount has not yet been determined and will be decided during the next phase of the case. The addition of prejudgment interest could further increase Musk’s financial liability.
Musk Expected to Appeal
Musk’s legal team is expected to appeal the ruling to a higher court. Until then, the jury’s verdict remains valid, and the lawsuit will continue through the damages process. An appeal could take months or longer before a final decision is reached.
Broader Significance
The case is one of the most significant legal disputes arising from Musk’s acquisition of Twitter, now known as X. It highlights the legal risks executives face when public statements influence stock prices and investor decisions. The outcome could have lasting implications for corporate communications and securities litigation involving high-profile business leaders.
