Twitter shareholders who sold stock or options between May 13 and October 4, 2022 sued Elon Musk for securities fraud, alleging his public statements during his $44B Twitter acquisition bid were designed to artificially depress the price so he could exit or renegotiate the deal. A jury found Musk liable in March 2026 for two misleading tweets, and after post-trial motions the district court upheld most of the verdict in July 2026, with damages potentially reaching $2.6B. Musk has appealed to the Ninth Circuit.
LATEST DEVELOPMENT · JUL 31, 2026
A jury found on March 20, 2026 that Musk made false and misleading statements about his $44B Twitter acquisition that damaged shareholders who sold during the 2022 buyout fight, while rejecting scheme liability and podcast-statement claims. In July 2026, Judge Breyer granted judgment as a matter of law only as to a May 17, 2022 tweet, denied a new trial and decertification, and approved prejudgment interest and a claims process. Plaintiffs’ counsel estimate class-wide damages of up to $2.6B. Musk filed a notice of appeal to the Ninth Circuit on August 4, 2026 seeking review of the July 6 post-trial order and the judgment, while the district court proceeds with the class claims process.
BACKGROUND
Giuseppe Pampena, later joined by lead plaintiffs Steve Garrett, Nancy Price, John Garrett, and Brian Belgrave, sued Elon Musk in October 2022 on behalf of Twitter shareholders who sold stock or options during the turbulent months of his takeover bid. The suit alleged that Musk violated Section 10(b) of the Securities Exchange Act and Rule 10b-5 by making a series of public statements, including tweets questioning bot counts on the platform and doubts about closing the deal, that were designed to talk down Twitter’s share price so Musk could either exit the $44B merger agreement or renegotiate a lower price.
Judge Charles R. Breyer of the Northern District of California allowed most of the case to proceed past a 2023 motion to dismiss and certified a class of sellers in December 2023. The case went to a rare full jury trial that began in March 2026. After a three week trial, the jury found on March 20, 2026 that Musk had made false or misleading statements, principally tweets from May 13 and May 17, 2022, that inflated or depressed the stock and harmed the class, while rejecting the claim that Musk ran a broader intentional scheme to defraud investors and clearing him of liability for statements made in a podcast interview.
Musk moved for judgment as a matter of law, a new trial, and decertification of the class. In July 2026, Breyer granted the motion only as to the May 17 tweet, denied it as to the May 13 tweet and in all other respects, denied decertification, and granted the plaintiffs’ requests for prejudgment interest and approval of a claims administration process. Musk filed a notice of appeal to the Ninth Circuit in late July and early August 2026, asking the appellate court to review both the post-trial order and related rulings, while the district court proceeds with setting up the claims process for class members.
TIMELINE
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AUG 4, 2026APPEALMusk files notice of appeal to Ninth CircuitMusk filed a notice of appeal asking the Ninth Circuit to review the post-trial order and related rulings from the jury verdict.
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JUL 6, 2026JUDGMENTBreyer largely denies Musk’s post-trial motionsJudge Breyer granted judgment as a matter of law only as to the May 17, 2022 tweet, denied it in all other respects, denied decertification, and granted plaintiffs’ motions for prejudgment interest and approval of a claims administration process.
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APR 3, 2026JUDGMENTJudgment entered on the jury verdictJudge Breyer entered judgment for the class on the March 20 verdict and set post-judgment motions for hearing.
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MAR 26, 2026PROCEDURALMusk’s counsel alleges juror biasAlex Spiro sent a letter to Judge Breyer asking for a probe into alleged juror bias and mockery of the trial process, and reiterating concerns about a fair trial.
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MAR 20, 2026JUDGMENTJury finds Musk liable for misleading Twitter investors
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MAR 2, 2026HEARINGJury trial begins in San FranciscoA rare full jury trial in a federal securities class action began before Judge Breyer, with Musk’s attorney Alex Spiro placed in a limited, non-jury-facing role after being named a potential witness.
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DEC 1, 2025PROCEDURALBreyer denies motion to disqualify Musk’s counselThe court denied a motion to disqualify Alex Spiro of Quinn Emanuel as Musk’s trial counsel despite plaintiffs’ objections that he might be a witness.
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DEC 11, 2023PROCEDURALBreyer largely denies Musk’s motion to dismissJudge Breyer granted in part and denied in part Musk’s motion to dismiss, allowing claims regarding several of Musk’s alleged misstatements, including the May 13 tweet, to proceed.
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DEC 2023PROCEDURALCourt certifies class of Twitter shareholdersJudge Breyer granted class certification for shareholders who sold Twitter stock, call options, or purchased put options during the May 13 to October 4, 2022 class period.
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FEB 14, 2023PROCEDURALCourt appoints lead plaintiffs and lead counselAfter competing motions, the court appointed Steve Garrett, Nancy Price, John Garrett, and Brian Belgrave as lead plaintiffs under the PSLRA, with Cotchett, Pitre & McCarthy LLP and Bottini & Bottini, Inc. as lead counsel.
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OCT 10, 2022FILINGTwitter shareholders sue Musk for securities fraud over his acquisition statements