A federal jury in San Francisco has delivered a unanimous verdict against Elon Musk, finding him liable for misleading Twitter shareholders during his 2022 acquisition of the platform.

After two days of deliberations, the jury concluded that Musk’s public statements between May and October 2022 intentionally drove down the company’s stock price, causing financial losses for investors.

The class action lawsuit, led by investor Brian Belgrave, focused on Musk’s claims about fake accounts and his assertions that the $44 billion deal was “on hold” or potentially abandoned, statements the jury ruled false and in violation of securities regulations.

During the trial, Musk argued that his comments and tweets were misinterpreted and that he did not intend to mislead investors.

However, the jury determined that his statements artificially reduced Twitter’s share price by approximately $3 to $8 per share during a critical period, influencing investor decisions.

Belgrave testified that he sold thousands of shares at a loss in July 2022 based on Musk’s remarks, underscoring the financial impact on shareholders.

The ruling marks a rare legal setback for Musk, often nicknamed “Teflon Elon,” despite recent legal wins, including a defamation case in Texas and a prior victory involving Tesla shareholders.

Despite attempts to withdraw from the acquisition, Twitter ultimately compelled Musk through legal action to finalize the deal at the agreed price in October 2022, after which he rebranded the platform as X.

Plaintiffs estimate total damages at approximately $2.6 billion, with affected investors potentially receiving thousands in compensation.

Musk’s legal team has announced plans to appeal the verdict, describing it as a setback, while legal analysts say the decision reinforces accountability for high-profile figures whose public statements can significantly influence financial markets.