In April 2022, Elon Musk agreed to buy Twitter for $44 billion.
He offered $54.20 per share and planned to take the company private.
Elon To Face Twitter Takeover Bold $44bn Bet
However, weeks later, the story changed.
On May 13, Musk said he would put the deal “on hold” over fake accounts.
As a result, investors pushed Twitter’s share price down sharply.
Soon after, he wrote that the takeover “cannot go forward”.
Bots And Backtracking
He claimed nearly 20% of accounts were fake.
By contrast, Twitter estimated the figure at under 5%.
Because of these statements, some shareholders say they lost money.
In October 2022, investors filed a lawsuit in federal court.
They represent shareholders who sold shares before the deal closed.
They argue Musk made false and misleading public statements.
Furthermore, they claim he damaged market confidence and pushed prices lower.
The lawsuit asks whether Musk raised real concerns.
At the same time, it questions whether he tried to renegotiate the price.
Investors say Twitter never agreed to pause the deal indefinitely.
They argue the merger contract gave Musk no such right.
In addition, they note that he waived due diligence in his offer.
By doing so, he gave up the right to review certain private information.
In July 2022, Musk said he would end the deal.
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At that moment, traders valued shares at $36.81.
That price stood about 32% below his agreed offer.
On May 27, 2022, Twitter sued Musk to enforce the agreement.
Then, on October 4, Musk reversed course and accepted the original terms.
He completed the acquisition later that month.
Courtroom Reckoning
Since then, Musk has reshaped the company.
He cut thousands of jobs and reduced content moderation rules.
He also rebranded Twitter as X.
This case does not mark his first courtroom battle.
In 2023, a jury cleared him in a separate investor lawsuit.
That case concerned his 2018 posts about taking Tesla private.
Meanwhile, legal pressure has continued elsewhere.
In November 2024, Bernard Arnault sued X.
Arnault leads LVMH.
The case includes newspapers such as Le Parisien and Le Monde.
They argue that X ignored EU rules and reused news content without payment.
Now, Musk prepares to testify in court.
Judges will decide whether his 2022 statements broke securities laws.
