Since buying Twitter for around $44 billion in late 2022, Elon Musk has changed the name to X, merged the social media platform with artificial intelligence startup xAI and then combined that company with his defense contractor, SpaceX.
Musk’s next big step may be to take SpaceX public in what would likely be a record IPO. But first, he has to revisit his past.
On Wednesday, Musk is expected to appear at a federal courthouse in San Francisco to defend himself against allegations that he committed civil securities fraud in the run-up to his purchase of Twitter.
Investors in Twitter filed a class action suit against Musk in October 2022 when — after months of tension and flip-flopping — he finally agreed to buy the social network for $54.20 a share, the price he originally promised in April of that year.
The investors alleged that Musk, now the world’s richest person, engaged in a scheme to weigh down Twitter’s stock in order to pressure the board to sell to him for a lower price. Musk’s attorneys have argued that he never intended to hurt Twitter or its other investors.
