Judge Breyer Rejects Elon Musk's Bid to Void Twitter Fraud Verdict

U.S. District Judge Charles Breyer rejected an attempt by Elon Musk to void a jury verdict that found the businessman defrauded investors during his $44 billion acquisition of Twitter in 2022. In addition to upholding the verdict, the court denied Musk's motion to decertify the investor class and granted a motion for prejudgment interest. Potential damages in the case are estimated between $2.5 billion and $2.6 billion.

The original March 20 verdict focused on Musk's May 2022 tweets regarding fake accounts, or bots. Investors alleged these communications were used to artificially depress the stock price to either force a renegotiation or allow Musk to exit the deal. Judge Breyer cited substantial evidence of falsity in a tweet dated May 13, although he ruled Musk was not liable for a May 17 tweet because it did not trigger a market reaction.

Musk also claimed that jurors were biased or mocking him because the figure $4.20 appeared on the verdict form. Judge Breyer dismissed this claim, asserting that the number is a reference to cannabis and that momentary regrets about a transaction do not justify lying to the investing public. Mark Molumphy, representing the investors, described the ruling as a victory for public market investors.