Musk tells jury 'people read too much' into his posts
Source: BBC Technology
Background
Billionaire Elon Musk told a jury in California on Wednesday that stock‑market investors read too much into his social media posts.
Musk was defending himself against claims from investors who accuse him of trying to manipulate markets with a series of misleading messages in the run‑up to his 2022 purchase of Twitter.
Musk said posts he wrote after he had struck a deal to buy the platform were “extremely literal” and not intended to try to reduce the price he would have to pay.
“I was simply speaking my mind,” he said when asked if he had considered the impact of his posts, which included one declaring his takeover plans on hold.
“People tend to read too much into things that I do,” he added.
The dispute marks the first lawsuit over Musk’s 2022 Twitter purchase to make it to trial, though his social‑media habit has landed him in legal trouble before. In earlier fights, he successfully beat back claims that he misled Tesla investors and committed defamation via his posts.
The trial, which started on Monday, is expected to last three weeks.
Investors are seeking unspecified monetary damages from Musk, which they say they are owed given his alleged misleading statements.
Investor Testimony
Brian Belgrave, who is leading the class of individual investors suing Musk, told the court on Monday that he sold thousands of Twitter shares in July 2022, believing that Musk was no longer going to buy the platform.
- Belgrave’s sale price was lower than the price he paid a few months earlier.
- It was also significantly lower than the $54.20 (£39) per share Musk eventually paid after the company sued him to enforce his original $44 bn takeover deal.
“I got screwed,” Belgrave said. “I got cheated.”
Post‑Takeover Changes
After Musk took over Twitter, he renamed the platform X and embarked on significant changes:
- Slashing staff
- Introducing a charge to verify accounts
- Loosening the approach to content moderation
Getty Images
Trial Proceedings
Aaron Arnzen, lead attorney for the plaintiffs, argued that Musk strategically rushed Twitter into accepting his takeover bid and then demanded more from the company to complete the deal. He likened the tactic to a boxing strategy—forcing the opponent to wear themselves out—to gain an advantage, asking Musk if he had employed a “rope‑a‑dope” method during takeover talks.
Musk conceded that he “may have.”
Arnzen alleged that the approach left individual shareholders with information from Musk’s public comments that was not intended for transparency but for his own benefit.
For much of the early questioning on Wednesday, Musk generally answered with “yes,” “no,” or “I don’t recall.” As the proceedings dragged on, Musk admitted he was trying to avoid giving simple “yes” or “no” answers, accusing Arnzen of “trying to mislead the jury” with his questions.
Judge Charles Breyer, overseeing the trial, briefly paused the proceedings, looked at Musk directly, and then called for questioning to continue.
Testimony of Jared Birchall
Musk’s more stoic responses echoed those of Jared Birchall, who heads Musk’s family office and personal financial investments. Birchall testified before the jury on Tuesday, repeatedly answering “I don’t recall” to questions about:
- Meetings regarding Twitter
- Conversations with Musk about the acquisition
- Emails he wrote and sent concerning the deal
Birchall also said he did not recall that Jack Dorsey was chief executive of Twitter prior to Musk’s takeover attempt. Dorsey and Musk are known to be friends; Dorsey had left the platform a few months before Musk’s bid after leading the company for seven years.
Reuters