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Jury finds Elon Musk misled investors during Twitter purchase

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Jury finds Elon Musk misled investors during Twitter purchase

Elon Musk attends the annual meeting of the World Economic Forum in Davos, Switzerland, on Jan. 22.

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SAN FRANCISCO — A jury has found Elon Musk liable for misleading investors by deliberately driving down Twitter’s stock price in the tumultuous months leading up to his 2022 acquisition of the social media company for $44 billion. But it absolved him of some fraud allegations, finding that he did not “scheme” to mislead investors.

The civil trial in San Francisco centered on a class-action lawsuit filed just before Musk took control of Twitter, which he later renamed X. Jurors were asked to decide if two tweets and comments Musk made on a podcast in May 2022 amounted to him intentionally defrauding Twitter shareholders, who sold their shares based on Musk’s statements.

The nine-person jury returned the verdict after nearly four days of deliberation, nearly three weeks after the trial began on March 2. They said that while Musk was liable for misleading investors with two tweets — including one said the Twitter deal was “temporarily on hold,” he did not do so with a statement he made on a podcast and that he did not intentionally “scheme” to defraud investors.

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The jury awarded shareholders between about $3 and $8 per stock per day as damages, which the plaintiffs’ lawyers said amounts to about $2.1 billion. Musk’s fortune is currently estimated at about $814 billion, much of it tied up in Tesla shares.

“It’s an important victory, not just for investors of Twitter, but for the public markets,” said Joseph Cotchett, an attorney for the plaintiffs. “I think the jury’s verdict sends a strong message that just because you’re a rich and powerful person, you still have to obey the law, and no man is above the law.”

Musk’s lawyers said they had no comment as they walked out of the courtroom.

Much of the trial focused on Musk’s claims about the number of bots on Twitter. Musk testified that Twitter had a much higher number of fake and spam accounts than the 5% it disclosed in regulatory filings. He used what he called Twitter’s misrepresentation of the number of fake accounts on its service as a reason to retreat from the purchase.

After Musk tried to back out, Twitter went to court in Delaware to force him to honor his original deal. Just before that case was scheduled to go to trial, Musk reversed course again and agreed to pay what he had originally promised.

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Members of Elon Musk's legal team, including attorney Michael Lifrak (left), exit the Phillip Burton Federal Building in San Francisco on March 4.

Members of Elon Musk’s legal team, including attorney Michael Lifrak (left), exit the Phillip Burton Federal Building in San Francisco on March 4.

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The central question of the case was whether Musk sent out tweets — including one on May 13, 2022, that said the Twitter deal was “temporarily on hold” while he sought information on the number of fake accounts on the service — as a deliberate scheme to tank Twitter’s shares. The jury found that while Musk did mislead investors with two tweets, he did not do so with a statement he made on a podcast because it was an opinion. The jurors also absolved him of scheming to drive down the stock.

The nearly three-week trial in San Francisco federal court for the Northern District of California saw testimony from former Twitter executives including CEO Parag Agrawal and CFO Ned Segal, as well as Musk, who was on the stand for more than a day.

In his testimony, Musk maintained that Twitter’s leadership lied about the amount of bots on the platform and withheld information from him about how the number of fake accounts was calculated. He repeatedly described the information that Twitter’s board provided with an abbreviation for a bull’s scatology. “I did make it clear that I thought it was BS,” Musk said of Twitter’s calculations asserting that only about 5% of its accounts were bots.

Musk also asserted that his decision to follow through on the deal at the original sales price provided a huge windfall for most Twitter shareholders.

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But Twitter’s shares fell below $33, or about 40% below Musk’s original purchase price, while the deal was hanging in limbo. That downturn cost shareholders who sold their stock during the uncertainty caused by what the lawsuit alleges was Musk’s deceitful behavior.

“I can’t control whether people sell their stock, but everyone who held the stock fared extremely well,” Musk said.

The plaintiffs argued that, as Tesla’s stock price declined and buying Twitter became too expensive for Musk, he tweeted statements that drove down the stock price in the hopes he could renegotiate the deal for a lower price or get out of it altogether.

Musk’s tweets, the plaintiffs’ lawyer argued, were not some “innocent mistake” or a “stupid tweet” off the top of his head, but carefully calculated to drive down’s Twitter’s stock price.

In closing arguments, Mark Molumphy, a lawyer for the plaintiffs, asked jurors to hold Musk accountable and compensate thousands of investors who lost money because of tweets Musk sent, including one from May 13, 2022, that said the deal was “on hold.”

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“He knew what he was doing,” Molumphy said.

Musk’s lawyers motioned for a mistrial several times during the contentious trial, contending that the billionaire Tesla CEO can’t get a fair trial in San Francisco because of animosity toward him from the public.

This isn’t the first time that Musk has been dragged into court to defend himself against allegations of duping investors with his social media posts. Three years ago, Musk spent about eight hours testifying in a San Francisco federal trial about his plans to buy Tesla — the electric automaker that he still runs as a publicly traded company — for $420 per share in a proposed 2018 deal that never materialized. A nine-member jury absolved Musk of wrongdoing in that case.

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Video: Will ICE Change Under Its New Leader?

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Video: Will ICE Change Under Its New Leader?
Markwayne Mullin, the new homeland security secretary, has promised a different approach, but how much change is likely? Our reporter Hamed Aleaziz describes what we know.

By Hamed Aleaziz, Sutton Raphael, Thomas Vollkommer, Gilad Thaler, Whitney Shefte and Alexandra Ostasiewicz

March 27, 2026

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A surprise resignation could open the door for an independent to win a Montana Senate seat

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A surprise resignation could open the door for an independent to win a Montana Senate seat

Seth Bodnar, the former president of the University of Montana, is now running for Senate as an independent

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BUTTE, Mont. – It’s long been an adage in Montana politics that if you’re running for office, you’d better have a float in the Butte St. Paddy’s Day Parade, which draws thousands to the mining city’s historic uptown, soaking up the nostalgia – and the Guiness. 

Here, you’re just steps from the towering old mining headframes and the one mile long and half mile wide Berkeley Pit. Now shuttered, it was  once one of the world’s largest copper deposits. 

Larry Carden, in a Notre Dame sweatshirt, never misses the parade.

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“You’ll see a lot more boos for the Republicans than you will the Democrats, I can guarantee you that,” he says. 

That’s a nod to Butte’s long history of Democratic politics and a strong labor movement going back to around 1900, when the “Copper King” mine owners ruled Montana business and media, and bribed their way into political office. Today, Carden, who’s retired, is worried that the mega rich are again influencing politics here, and how expensive life is in his home state.

“Between health care and gas and food, and you go to the store the other day, there’s rib steaks $19.99 a pound, you know,” Carden says.  

A political group marches in the St. Patrick's Day parade in Butte, Montana, March 17 2026

A political group marches in the St. Patrick’s Day parade in Butte, Montana, March 17 2026

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This year’s parade followed an unusually turbulent few days in Montana’s political scene – half of its congressional delegation abruptly retired. Despite the state’s recent tilt from purple to deep red, the races for their seats could be more in play now because of the way Senator Steve Daines and Congressman Ryan Zinke, both Republicans, gave up them up and chose their successors. In Daines’ case, he withdrew his candidacy just minutes before the filing deadline. 

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Like a lot of people in Butte, Carden is a longtime Democrat. But he says he’s grown disillusioned with party politics.

“I would rather everything be independent where there is no party designation and then you have to pay more attention to who the person actually is,” Carden says.   

New Candidate opts to go independent

That’s exactly what Seth Bodnar, a former Green Beret running for U.S. Senate, is trying to capitalize on. He joined other candidates mixed in with Irish dancing troupes and fire department floats, as he walked the parade route along Park Street shaking the occasional hand and tossing candy. 

In an interview with NPR earlier in Missoula, Bodnar, who recently resigned his post as University of Montana president, pitched what he says would be his bi-partisan appeal.

“I’m an independent,” Bondar says. “When I raised my right hand at the age of 18 and I swore an oath to this Constitution when I joined the military, not to a political party.”.

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Person over party used to be the playbook in Montana, which some call just one long Main Street. It’s how former Senator Jon Tester used to win despite being a Democrat as the state got redder.

The day after Bodnar formally announced he was gathering signatures to get on the ballot, his long shot bid got taken a lot more seriously. 

Sen. Steve Daines, who was elected to the Senate in 2014, sent shockwaves through the state’s political scene when he announced in a video posted to X that he’d decided not to seek reelection.  

Sen. Steve Daines, R-Mont., speaks at the Senate Finance Committee confirmation hearing for Scott Bessent, President-elect Donald Trump's choice to be Secretary of the Treasury, at the Capitol in Washington, Thursday, Jan. 16, 2025.

Sen. Steve Daines, R-Mont., speaks at the Senate Finance Committee confirmation hearing for Scott Bessent, President-elect Donald Trump’s choice to be Secretary of the Treasury, at the Capitol in Washington, Thursday, Jan. 16, 2025.

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“I’m also very thankful to have served alongside President Trump and my colleagues in the Senate,” Daines said in the video. “Together we built a conservative majority on the Supreme Court, we delivered the largest tax cut in U.S. history, we unleashed American energy dominance and secured our southern border.” 
 
Daines’ late hour withdrawal presumably clears the way for his chosen successor, Kurt Alme, the U.S. Attorney for Montana until he declared his candidacy for Daines’ seat. Daines later said withdrawing earlier could have enticed a prominent Democrat like Tester to enter the race. 

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Independent Seth Bodnar says it reminds him of the Montana of old. 

“We have direct election of senators in the United States in part because of political corruption in this state 125 years ago, Copper Kings trying to buy U.S. Senate seats,” Bodnar says. “That didn’t work back then and it’s not going to work right now.”

But Democrats say Bodnar’s entry as an independent will just split the liberal vote. 

The GOP base is angry too

“Montanans are getting very indignant about what they see as out and out dishonesty,” says Roger Koopman, a former Republican legislator and Montana Public Service commissioner from Bozeman.  

Koopman says the party establishment’s backroom dealing is a gift to Democrats and especially Seth Bodnar, who he says is a liberal running as an independent.

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“They’re going to say, ‘hey, I’m over these Republicans playing games with me, you can’t do that and expect me to vote for you, I’m not going to vote Democrat, but here’s this guy out here who says he’s independent, let me give him a try,’” Koopman says. 

Alme has been keeping a low profile. Political pundits say that might be by design. A campaign spokesperson sent NPR this statement: “Anyone could run for this seat. Kurt is running on his record as the Trump-endorsed candidate of common sense who knows how to be tough on violent crime, dismantle drug cartels, and deliver historic tax relief. Voters will decide, and Kurt is confident in his work serving Montana and helping President Trump put America First.”

At Montana State University, political science department chair Eric Austin says he expects party tensions will cool and Republicans will rally around their nominee by November. 

“I think in part that speaks to the changes in the electorate in the state,” Austin says. “As the state has become more red, people have more strongly affiliated themselves with the Republican Party and less as independents.” 

However, Austin says the midterms will be a referendum on President Trump and there’s growing economic anxiety in Montana. Farmers are getting hurt by Trump’s tariffs. His Iran War has sent fertilizer prices soaring, raised interest rates and the cost of gas. 

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Back in Butte, at the St. Paddy’s Day parade, longtime Democratic activist Evan Barrett says there’s a resurgence in populist resentment in Montana. 

Longtime Montana Democratic party activist Evan Barrett at the St. Patrick's Day parade in Butte, Montana, March 17 2026

Longtime Montana Democratic party activist Evan Barrett at the St. Patrick’s Day parade in Butte, Montana, March 17 2026

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“It’s almost like a repetition of the past,” says Barrett, a one time economic aide to former Governor Brian Schweitzer.  

Ducking into an old storefront to take a break from the spectacle of the parade, Barrett told NPR there’s a feeling in the electorate that a lot of outside money is coming into influence politics, but not staying in Montana and being invested into things like schools. 

“So this is a really wild and different year,” Barrett says. “Anybody that tells you they know what’s gonna happen, well, be a bit skeptical.” 

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President Trump has endorsed last minute Senate candidate Kurt Alme but it’s not clear what kind of effect that might have on voters in November. 

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Video: Savannah Guthrie Says She Believes Her Mother Was Taken for Ransom

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Video: Savannah Guthrie Says She Believes Her Mother Was Taken for Ransom

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Savannah Guthrie Says She Believes Her Mother Was Taken for Ransom

Savannah Guthrie spoke on the “Today” show in her first interview since her mother, Nancy Guthrie, was abducted from her home near Tuscon, Ariz.

“The ransom note, notes for ransom requests came. Did you believe those to be real?” “The two notes that we received that we responded to — I tend to believe those are real.” “Really?” “We still don’t know. Honestly, we don’t know anything. We don’t know anything. So I don’t know that it’s because she’s my mom. But yeah, that’s probably — which is too much to bear to think that I brought this to her bedside, that it’s because of me. And I just say, I’m so sorry, Mommy. I’m so sorry. We need answers. We cannot be at peace without knowing. And someone can do the right thing. And it is never too late to do the right thing.”

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Savannah Guthrie spoke on the “Today” show in her first interview since her mother, Nancy Guthrie, was abducted from her home near Tuscon, Ariz.

By Christina Kelso

March 26, 2026

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