A United States federal judge has dismissed Elon Musk's request to overturn a jury verdict that found him liable for defrauding Twitter investors. The ruling was made on July 6, 2026, by US District Judge Charles Breyer in San Francisco, California, who also denied Musk's motion to decertify the class of investors involved in the case.
Verdict Details and Implications
The jury concluded that Musk manipulated Twitter's stock price after agreeing to a $44 billion takeover. Judge Breyer noted that Musk's actions led investors to suffer significant financial losses.
In a statement, Breyer emphasized, “Even if the speaker has a change of heart or a momentary regret about a transaction, such qualms do not justify lying to the investing public.” Following the verdict in March, investor lawyers estimated damages could reach approximately $2.6 billion.
Key Tweets and Investor Impact
The court found Musk liable for two specific tweets sent on May 13 and May 17, 2022, questioning the number of fake and spam accounts on Twitter. These tweets reportedly caused the company's share price to drop by 18 percent over two trading days.
Investors argued that Musk's misleading statements were intended to renegotiate the takeover deal. Breyer noted, “A jury could conclude that Musk had a motive to get out of the existing deal and used bots as a pretext to do so.”
Rejection of Bias Claims
Musk's legal team claimed that jurors displayed bias during deliberations, particularly regarding the figure $4.20 highlighted in the verdict form, which is often associated with cannabis culture. However, Breyer dismissed these claims, stating, “It defies common sense” that jurors were biased against Musk.
He acknowledged that the jurors deliberated for nearly four days and sided with Musk on some claims. Breyer concluded that there was no evidence linking the number 420 negatively to Musk.
- July 6, 2026: Judge Breyer's ruling made public
- $44 billion: The value of Musk's Twitter takeover
- $2.6 billion: Estimated damages for investors
- 18 percent: Drop in Twitter's share price due to Musk's tweets
As Musk faces ongoing legal battles, including a separate lawsuit in Manhattan for similar allegations, the implications of this ruling could resonate throughout the financial markets as investors seek justice.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Al Jazeera. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
