Elon Musk Criticizes Jury Decision, Alleges Racial Discrimination in $4.2M Verdict

Twitter Inc. (now X) Shareholders Win $44 Billion Defamation Case Against Elon Musk

Key Findings:

• A San Francisco jury found Elon Musk, CEO of Tesla Inc., liable for misleading Twitter Inc. (now X) shareholders in 2022.
• The jury concluded that Musk's tweets about fake accounts on Twitter negatively impacted the company's stock price, leading to a $44 billion offer to acquire Twitter being fulfilled at the original agreed price of $54.20 per share.
• The verdict may cost Musk billions of dollars, with the final amount to be determined in a later claim process, potentially reaching $2.6 billion.

Background:

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• In May 2022, Musk tweeted concerns about the prevalence of fake accounts on Twitter, which led to a decline in the company's stock price.
• Musk's legal team has vowed to appeal the verdict, citing a "bizarre and highly questionable" joke made by the jury in a verdict form, highlighting the number $4.20, which is cultural slang for pot smoking.

SEC History:

• In 2018, Musk tweeted "funding secured" to take Tesla Inc. private at $420 a share, leading to a stock price increase, but later abandoning the plan, resulting in a combined $40 million settlement with the SEC.

Investor Response:

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• Lawyers for the investors who brought the case have urged the court to strike Musk's lawyer's letter from the record, calling it "egregiously unfaithful to the record in this case."