A federal judge has denied Elon Musk's attempt to overturn a March jury verdict that found he defrauded investors during his acquisition of Twitter. U.S. District Judge Charles Breyer ruled on July 6, 2026, that Musk's May 13, 2022 tweet about the number of bot accounts on Twitter negatively impacted the platform's stock price during negotiations for the purchase. However, the judge dismissed a separate claim regarding a subsequent tweet from May 17, stating it did not constitute securities fraud.
Judge Breyer emphasized that securities laws are based on trust and that Musk's May 13 tweet suggested he had the right to pause the deal, despite having waived due diligence. The plaintiffs, who sold Twitter stock between May 13 and October 4, 2022, allege that Musk made misleading statements to lower the stock price, which caused them financial losses. Musk's lawyers argued that the jury was biased due to the use of blue ink for a specific figure related to the case.
The judge noted that the jury's decision may have been influenced by cultural references associated with the number '420,' which Musk has publicly joked about. A lawyer for the shareholders estimated Musk could be liable for up to $2.5 billion in damages, although this amount may change following the ruling. Musk has not yet exhausted his appeal options in this case.