Did Musk cheat Twitter shareholders?

Former Twitter shareholders who sold between May and October 2022 said Musk drove down the stock to get leverage over the price. On 20 March 2026, a jury in San Francisco found him liable over his 13 May 2022 tweet that the deal was “temporarily on hold.” It rejected the claim that he ran a broader scheme, and found a podcast statement was not misleading. [1][2]

The verdict form set the stock’s inflation, or deflation, per share by day, including $6.17 a share on 13 May. [2]

In July 2026, the judge rejected most of Musk’s post-trial challenges. The judge set aside liability for one other tweet, from 17 May, and kept the 13 May finding. A claims firm estimated total damages at about $2.6 billion; that is an estimate, not a judgment amount. [3][4]

The SEC sued Musk in January 2025, saying he filed late when his Twitter stake passed 5 percent in March 2022, buying shares cheaper in the meantime. [1]

On 8 July 2026, a federal judge approved a settlement in which Musk’s revocable trust pays a $1.5 million penalty and agrees to an injunction on future disclosures; Musk himself was dismissed from the case. The judge approved it “with significant misgivings,” citing red flags. [1][2]

Thousands of workers lost their jobs after the takeover. Some sued, saying Twitter owed them severance under its prior plan. In August 2025, Musk and X reached a tentative settlement of a $500 million lawsuit. [1][3]

Law360 later reported that the deal had run into trouble. Its final status is listed in the audit as not settled. [2]