Elon Musk is currently defending his actions in a civil trial in San Francisco, where he faces a class-action lawsuit alleging that misleading tweets contributed to a decline in Twitter’s stock value before his acquisition of the company. The lawsuit pertains to his October 2022 purchase of Twitter, now rebranded as X, for $44 billion, and centers on claims that he violated federal securities laws by misrepresenting the number of spam accounts on the platform. While Musk asserts that the percentage of bots is much higher than Twitter’s disclosed figure of 5%, former executives, including ex-CEO Ned Segal, maintain that Twitter never submitted false filings to the SEC, contending that the actual spam rate may be closer to 1%. The ongoing debate over Twitter’s spam disclosures is compounded by the company’s past issues with overstating user metrics, including a significant settlement in 2021 related to these inaccuracies.
Elon Musk defends tweets in lawsuit over Twitter stock drop
