A federal jury in California found that Elon Musk misled Twitter shareholders with two tweets in May 2022, causing the company’s share price to drop ahead of his $44 billion acquisition.

The class-action verdict could result in Musk paying roughly $2.6 billion in damages, though jurors concluded he did not “scheme” to defraud investors.

The trial included Musk’s in-person testimony, and the lawsuit was filed on behalf of shareholders who sold Twitter stock between May and October 2022.

Musk’s legal team immediately announced plans to appeal, calling the decision a “setback,” Al-Jazeera has reported.

The ruling represents a rare judicial defeat for Musk, who has largely avoided penalties in prior high-profile lawsuits.