Musk to stand trial in failed Twitter buyout case
Photo: Elon Musk (Getty Images)
Billionaire Elon Musk will testify under oath in the case regarding his 2022 purchase of the social media platform Twitter (now X). Investors have filed a lawsuit, claiming that his controversial decision to acquire the platform was merely a tactic to lower its stock price, according to Bloomberg.
Musk’s lawyers had previously objected to his personal appearance for questioning, but he has now agreed to meet with the investors' attorneys on April 3 in Washington.
Bloomberg notes that the billionaire has recently been busy working as a key adviser to former US President Donald Trump on government spending cuts. However, he is also involved in multiple legal proceedings related to his companies and personal investments.
Investors claim that Musk’s wavering over the Twitter purchase, including his public criticism of the platform’s management, cast doubt on the deal’s closure and caused a drop in stock value. This, in turn, harmed investors but strengthened Musk’s position in negotiations. Ultimately, the billionaire completed the $44 billion acquisition after being sued for attempting to back out of the deal. He later rebranded the company as X Corp.
The report recalls that in December 2023, a federal judge in San Francisco rejected Musk’s request to dismiss the case, stating that the businessman’s statements “did give an impression materially different from the state of affairs that existed.”
Additionally, in January 2025, the US Securities and Exchange Commission (SEC) filed a lawsuit against Musk, just days before Trump’s inauguration. The commission alleged that the billionaire violated disclosure deadlines regarding his growing stake in Twitter before purchasing the company. According to the SEC, his secret accumulation of discounted shares harmed Twitter shareholders, who sold their stock prematurely, collectively losing over $150 million.
Judges challenge Musk not only as a businessman
Following Trump’s inauguration, Musk was appointed head of the Department of Government Efficiency (DOGE).
Later, in February this year, federal judge Paul Engelmayer blocked DOGE from accessing records from the US Treasury Department containing confidential personal data, including Social Security numbers and bank account details.
