Jury finds that two tweets posted in May 2022 by Musk contained false statements responsible for a plunge in Twitter’s share price.

A federal jury in California has found that tech tycoon Elon Musk misled Twitter shareholders, driving down the company’s share price as he was poised to buy it in a $44bn deal.

The verdict delivered on Friday in the class action securities lawsuit means the world’s richest person could be ordered to pay billions of dollars, according to damages calculated by jurors.

After a three-week trial in a San Francisco federal court – which included in-person testimony from Musk – the jury found that two tweets posted in May 2022 by the Tesla and SpaceX CEO contained false statements responsible for a plunge in Twitter’s share price.

Investor Giuseppe Pampena had filed the suit on behalf of people who sold Twitter shares between mid-May and early October 2022.

Jurors agreed that Musk violated a securities rule that bars false and misleading statements that sink a stock price, in this case that of Twitter, the verdict form showed. A lawyer for the plaintiffs estimated the damages at about $2.6bn.

But the nine-person jury absolved Musk of some fraud allegations, finding that he did not “scheme” to mislead investors.

Minutes after the judgement was announced, lawyers for Musk, who acquired the social media platform in late October 2022 and later renamed it X, said their client will appeal the decision, characterising it as a “setback”.

Musk, who has a near-constant presence on X, did not immediately react to the verdict, which marks a rare legal defeat for the billionaire often dubbed “Teflon Elon” for his ability to emerge unscathed from lawsuits he is expected to lose.

In 2023, a jury in the same San Francisco federal court cleared him within hours of similar charges brought by Tesla shareholders, following his 2018 tweets claiming he had the funding to take the automaker private.

Musk abandoned his effort to get out of buying Twitter in late 2022 after the company took him to court to uphold the contract. He has since merged the social media platform with his artificial intelligence startup xAI and his private space exploration firm SpaceX.

Forbes magazine earlier this month estimated Elon Musk’s net worth at $839bn, a figure based primarily on his stakes in his portfolio of companies including Tesla and SpaceX.