Elon Musk is now waiting for a jury's decision after closing arguments wrapped up in a high-stakes civil trial involving his $44 billion purchase of Twitter, now known as X.
Shareholders accuse Musk of misleading investors during his attempt to back out of the deal in 2022.
The case, heard in San Francisco, centers on claims that Musk used public statements and tweets to influence Twitter's stock price. Investors argue that his actions caused financial losses and are seeking compensation.
The lawsuit was filed shortly before Musk completed the acquisition in October 2022, months after initially agreeing to buy the company for $54.20 per share.
A major focus during the trial was Musk's repeated claims about fake accounts on the platform. He argued that Twitter had far more bots than the company's public estimate of 5%, NY Post reported.
Musk used this concern as a reason to pause the deal, famously tweeting that the purchase was "on hold."
Plaintiffs' lawyer Mark Molumphy told jurors that Musk's behavior was deliberate.
"He knew what he was doing," Molumphy said, arguing that the tweets were designed to push the stock price down so Musk could renegotiate or walk away from the deal. The legal team said these were not careless remarks but calculated moves.
Twitter shareholder lawsuit accusing Elon Musk of driving down stock goes to jury: 'Knew what he was doing' https://t.co/wl4HSBkupo pic.twitter.com/7hJQpI6HKP
— New York Post (@nypost) March 17, 2026
Elon Musk Lawyer Denies Fraud Claims
Musk's defense pushed back strongly. His lawyer, Michael Lifrak, told the court there was "not one shred of evidence" showing Musk intended to commit fraud.
According to ET, he stressed that even if Musk had a motive, that alone does not prove wrongdoing. Lifrak also argued that wanting to pay less for a deal is normal, saying, "You can't just say" that desire equals fraud.
The trial also examined whether Twitter had been transparent about its user data. Former CFO Ned Segal testified that the company's bot estimate was accurate and denied any false filings.
However, Musk maintained that fake accounts could be as high as 20%, comparing it to something obvious like "the sky is blue."
Jurors were also reminded that Twitter had previously settled claims related to overstating user growth. Still, the company had long disclosed that its bot estimates could be imperfect.
Judge Charles R. Breyer instructed jurors to remain fair, noting that personal opinions about Musk should not affect the outcome.
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