⚖️ Elon Musk liable to Twitter investors; lawyers put it at $2.1B
Musk's lawyers call the verdict "a bump in the road" and will appeal. Nvidia's Jensen Huang now faces a shareholder suit. ⏳
By MrMoney, business desk · Desk editor Laima Ērkšķe-Kreicberga · · 6 min read
VERDICTPhoto: Gage Skidmore · CC BY-SA 4.0By the numbers
- 8y 3mfrom first to latest entry on record
- 10receipts behind this story
On Monday a shareholder sued Nvidia and its CEO, Jensen Huang, in a California court, AP reported. The complaint claims the company misled investors in its responses to news reports about Huang's relationship with a woman those reports say is suspected of working for Chinese intelligence. It seeks unspecified damages and a jury trial, on behalf of anyone who bought Nvidia shares between October 9 and November 8. AP reports that Huang has acknowledged the affair and apologized in an open letter on Nvidia's website, where he wrote: "I support the investigation and will cooperate fully." Nvidia didn't immediately respond to AP's request for comment.
What we know
- A jury found Elon Musk liable on March 20, 2026 for misleading Twitter investors with two tweets, but cleared him of a fraud scheme and of a podcast statement, AP reported.
- Plaintiffs' lawyers say damages come to about $2.1 billion in stock and $500 million in options, per AP. The New York Times put their estimate at roughly $2.5 billion, with details to be set later.
- Musk's lawyers at Quinn Emanuel called the verdict "a bump in the road" and said they look forward to "vindication on appeal."
- A shareholder sued Nvidia and CEO Jensen Huang on Monday in a California court, seeking unspecified damages. Nvidia didn't immediately respond to AP.
- The SEC sued Musk on January 14, 2025 over an 11-day-late disclosure of his Twitter stake. His lawyer, Alex Spiro, said Musk "has done nothing wrong," per The New York Times.
None of that has been tested in court. AP reports Nvidia shares fell $7.97, or 4.3%, on Monday, wiping out about $190 billion in market value. A CEO sued personally by investors over what was said, and when, is a story with a documented history. MrMoney has pulled the receipts on the best-documented one: Elon Musk and the Twitter stake. Here is the timeline, with sums as the filings and lawyers state them.
The timeline
Sept. 27, 2018: the SEC goes first
The SEC sued Musk in federal court in New York, accusing him of fraud over his August 2018 tweet that he was considering taking Tesla private at $420 with "funding secured," The New York Times reported. The suit sought to bar him from serving as an executive or director of public companies. Musk called the action "unjustified" in a statement distributed by Tesla.
See the receipt (opens in a new tab)Sept. 29, 2018: settled in two days
The Verge reported that Musk agreed to step down as Tesla chairman within 45 days, with $20 million fines each for Musk and Tesla. He also agreed to neither admit nor deny the charge. The SEC separately charged Tesla with failing to have disclosure controls over Musk's tweets, and the fines go to harmed investors under a court-approved process.
See the receipt (opens in a new tab)April 12, 2022: the stake disclosure draws its first shareholder suit
A Twitter shareholder sued Musk in federal court in New York, Forbes reported. The complaint claims his delay in disclosing a stake above 5% let him buy more shares at lower prices, at the expense of investors who sold in the interim. It sought class-action status for sellers between March 24 and April 1. Musk's response is not in the Forbes report, and Twitter didn't immediately respond to Forbes.
See the receipt (opens in a new tab)May 2022: a second proposed class action, with a price tag
CNBC reported a proposed class action in the Northern District of California claiming Musk made statements and tweets "designed to create doubt about the deal and drive Twitter's stock down substantially." The complaint says the aim was to back out or cut the price by as much as 25%, which it puts at an $11 billion reduction. It also cites the late stake disclosure and a May 13 tweet saying the deal was "temporarily on hold." Musk did not return CNBC's requests for comment.
See the receipt (opens in a new tab)Feb. 3, 2023: the Tesla jury says no
A U.S. jury in San Francisco found Musk and Tesla not liable for misleading investors with the 2018 "funding secured" tweets, Reuters reported. Plaintiffs had claimed billions, and an economist hired by the shareholders calculated losses as high as $12 billion. The jury returned its verdict about two hours after starting deliberations. Musk tweeted: "Thank goodness, the wisdom of the people has prevailed."
See the receipt (opens in a new tab)Oct. 2023 to Feb. 2024: the SEC wants his testimony
The SEC sued in October 2023 to compel Musk to testify in its probe of his 2022 Twitter share purchases and statements, Reuters reported. Musk said the agency had already questioned him twice and accused it of harassment. In February 2024 Magistrate Judge Laurel Beeler rejected that argument and ordered him to testify.
See the receipt (opens in a new tab)Jan. 14, 2025: the SEC sues over the 11 days
The SEC sued Musk in federal court in Washington, claiming he waited 11 days past the deadline to disclose his Twitter stake, The New York Times reported. The filing says this "allowed him to underpay by at least $150 million" for additional shares. Musk's lawyer, Alex Spiro, said Musk "has done nothing wrong" and called the suit "a single-count ticky-tack complaint." How that case ended is not in the documents read.
See the receipt (opens in a new tab)March 20, 2026: the Twitter jury splits
After a trial that began March 2 in federal court in San Francisco, a nine-person jury found Musk liable for misleading investors with two tweets, including the May 13, 2022 post saying the deal was "temporarily on hold," AP reported. It found he did not mislead with a podcast statement, because that was opinion, and did not "scheme" to defraud. Jurors set damages at about $3 to $8 per share per day. Plaintiffs' lawyers say that is about $2.1 billion in stock and $500 million in options, AP reported. The New York Times put their estimate at roughly $2.5 billion, with details to be set in the coming weeks.
See the receipt (opens in a new tab)"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."
Mark Molumphy, attorney for the plaintiffs, quoted by AP, March 20, 2026
"We view today’s verdict, where the jury found both for and against the plaintiffs and found no fraud scheme, as a bump in the road. And we look forward to vindication on appeal."
Quinn Emanuel Urquhart & Sullivan, Musk's legal team, statement quoted by AP, March 20, 2026
The scorecard
| Case | Court | What was claimed | Outcome on record |
|---|---|---|---|
| SEC suit over "funding secured" (filed Sept. 27, 2018) | Federal court, New York | Securities fraud over Tesla tweets; bar from officer roles sought | Settled Sept. 29, 2018: $20M fines each for Musk and Tesla; neither admit nor deny |
| Tesla shareholder class action over the same tweets | Federal court, San Francisco | Billions in losses; shareholders' economist said up to $12B | Jury found Musk and Tesla not liable, Feb. 3, 2023 |
| Twitter shareholder suit over late stake disclosure (filed April 12, 2022) | Federal court, New York | Class of investors who sold March 24 to April 1 | Outcome not in documents read |
| Proposed Twitter class action (May 2022) | Federal court, Northern District of California | Statements meant to cut the price by up to 25%, put at $11B | Outcome not in documents read |
| SEC suit over Twitter stake (filed Jan. 14, 2025) | Federal court, Washington | 11-day-late disclosure; underpaid by at least $150M | Outcome not in documents read |
| Twitter shareholder trial (verdict March 20, 2026) | Federal court, San Francisco | Two tweets and a podcast statement misled sellers | Liable on two tweets; appeal promised; lawyers say about $2.1B in stock |
The Times called the March verdict a rare loss for Musk, who won the 2023 Tesla case and shareholder suits over a solar-company acquisition and his pay package. The pattern on record: years of litigation, split outcomes, appeals promised. Huang's complaint is a day old. No court has ruled on it, and the documents read contain no Nvidia response beyond AP's note that it didn't immediately respond.
Quick quiz · 3 questions
Earlier on file: Delaware Supreme Court restores Musk's $56B Tesla pay · Musk's OpenAI suit dismissed: the jury faulted his timing
The Elon Musk file
- Ruled
A federal jury ruled on May 18, 2026 that Musk's OpenAI breach-of-charitable-trust suit was filed too late, per CNBC. Musk's OpenAI suit dismissed: the jury faulted his timing
- Filed
Musk amended his OpenAI lawsuit in April 2026 to seek reversal of the 2025 for-profit restructuring, per Ars Technica. Musk's OpenAI suit dismissed: the jury faulted his timing
- Ruled
A jury found Musk liable for misleading Twitter investors with two tweets; his lawyers said they will appeal, per AP. This story
- Ruled
Delaware Supreme Court reverses rescission of the 2018 pay plan and awards $1 in nominal damages. Delaware Supreme Court restores Musk's $56B Tesla pay
- Filed
SEC sued Musk in Washington over a late Twitter stake disclosure; his lawyer said he did nothing wrong, per NYT. This story
- Ruled
Chancery Court reaffirms its ruling, rejects the 2024 re-vote as ratification and sets plaintiff's lawyers' fee at $345 million. Delaware Supreme Court restores Musk's $56B Tesla pay
- Ruled
A magistrate judge ordered Musk to testify in the SEC's probe of his Twitter purchase, per Reuters. This story
- Ruled
Delaware Court of Chancery rules Musk's 2018 Tesla pay plan unfair and orders it rescinded in Tornetta v. Musk. Delaware Supreme Court restores Musk's $56B Tesla pay
- Ruled
A jury found Musk and Tesla not liable over the 2018 'funding secured' tweets, per Reuters. This story
- Filed
A Twitter shareholder sued Musk in New York federal court over late disclosure of his stake, per Forbes. This story
- Filed
SEC sued Musk in New York federal court over his 'funding secured' tweet; Musk called the action unjustified, per NYT. This story
- Reported
Elon Musk left OpenAI's board in Feb. 2018, citing a potential conflict with Tesla's AI work, per OpenAI's blog post. Musk's OpenAI suit dismissed: the jury faulted his timing
On file: The Elon Musk file · The Tesla file · The Twitter file
The Ledger
On the record
- A jury found Musk liable on March 20, 2026 for misleading Twitter investors with two tweets; his lawyers say they will appeal.
- A shareholder complaint against Nvidia and Huang was filed Monday seeking unspecified damages; Huang has apologized for the affair in an open letter.
Still rumour
- Final damages in the Musk verdict: plaintiffs' lawyers say about $2.1B in stock (AP) or roughly $2.5B (NYT); the court's figure is not in the documents read.
- Outcomes of the 2022 shareholder suits and the SEC's 2025 suit are not in the documents read.
- Whether any Nvidia claim survives: no ruling, and the spy suspicions come from news reports, not findings.
That's the record. The rest is rumour. - MrMoney
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