Twitter recently made it possible to get a verification check added to an account by just paying 8 dollars, causing a rash of fake 'verified' accounts. One of these accounts was for Eli Lilly, a company that provides life saving medication at generally high prices. The fake account claimed that Eli Lily would be providing insulin to everyone for free, a tweet that got spread virally and which lead to a very noticeable drop in stock price for the real company.
The news has implied Twitter would face serious repercussions for this, but I'm curious what their actual legal status is. I thought the law protected social media providers from what their users said, is the fact that Twitter allowed a verified check somehow make twitter more liable? Could Eli Lilly actually sue Twitter for enabling their customer to do something harmful like this?
Separate from the risk of being sued I believe twitter is under at least two orders from the FTC that may have been violated and thus may lead to penalties?
Basically what is Twitter actual liability for this tweet, and what are the odds of actual financial cost to twitter-in terms of penalties and fees not loss of customer or advertisers- as a result of this tweet? How much could they face to lose?