US Judge Upholds Verdict of Elon Musk's Twitter Takeover Fraud
A US District Judge has denied Elon Musk's bid to overturn a jury verdict finding he defrauded Twitter investors during his $44 billion takeover in 2022. The judge upheld the finding on one of Musk's tweets, granting a narrow point on another. Investors may seek up to $2.6 billion in damages.
Key points
- US District Judge Charles Breyer denied Elon Musk's motion to set aside a jury verdict finding him liable for defrauding Twitter investors during his 2022 takeover.
- The judge upheld the finding on Musk's 13 May 2022 tweet claiming the deal was on hold, citing testimony from one of Musk's own bankers.
- Musk's lawyers won a narrow point, with the judge agreeing there was too little evidence that a separate 17 May tweet caused investors a market loss.
- Investors may seek up to $2.6 billion in damages, with the judge also granting prejudgment interest.
- The ruling upholds the essence of the securities laws, which are 'about trust', according to the judge.
US Judge Upholds Verdict of Elon Musk's Twitter Takeover Fraud
A US District Judge has denied Elon Musk's bid to overturn a jury verdict finding him liable for defrauding Twitter investors during his $44 billion takeover in 2022.
The ruling upholds the finding on one of Musk's tweets, with the judge citing testimony from one of Musk's own bankers. The banker stated that Musk's 13 May 2022 tweet, claiming the deal was on hold pending bot data, was literally untrue.
Musk's lawyers did manage to win a narrow point, with the judge agreeing there was too little evidence that a separate 17 May tweet caused investors a market loss.
The ruling has significant implications for investors, who may seek up to $2.6 billion in damages. The judge also granted prejudgment interest, further increasing the potential payout.
The decision is a major victory for investors, who had accused Musk of using bots as a pretext to escape the deal. The ruling upholds the essence of the securities laws, which are 'about trust', according to the judge.
Sources
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