A federal jury in California ruled on Friday (03/20/2026) that technology mogul Elon Musk misled Twitter shareholders, causing a drop in the company’s stock price just as he was preparing to acquire it in a $44 billion deal.

The verdict in this securities class action lawsuit means the businessman could be forced to pay billions of dollars, depending on damages calculated by jurors.

Minutes after the ruling was announced, lawyers for the world’s richest person reported that their client will appeal the decision, calling it a “setback.”

Following a three-week trial in federal court in San Francisco — which included in-person testimony from Musk — the jury determined that two tweets posted in May 2022 by the Tesla and SpaceX CEO contained false statements responsible for a drop in Twitter’s stock price.

Investor Giuseppe Pampena had filed the lawsuit on behalf of people who sold Twitter shares between mid-May and early October 2022.

Musk acquired the social media platform in late October 2022 and subsequently rebranded it as X.

The jurors agreed that Musk violated a securities rule that prohibits false and misleading statements that sink the price of shares, in this case that of Twitter, according to the verdict.

Musk, who has a near-constant presence at X, did not immediately react to the verdict.

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