Elon Musk has agreed to settle a civil lawsuit brought by the U.S. Securities and Exchange Commission over his delayed disclosure of Twitter share purchases in 2022. Under the agreement, a trust in Musk’s name will pay a $1.5 million civil penalty, according to filings in a Washington, D.C. federal court. Musk did not admit wrongdoing and will not be required to forfeit the estimated $150 million he allegedly saved by delaying the disclosure.
The regulator had accused Musk of waiting 11 days to reveal his initial 5% stake in Twitter—now rebranded as X—allowing him to purchase additional shares at lower prices before publicly disclosing a 9.2% holding. The settlement, which still requires approval from a federal judge, concludes a long-running dispute between Musk and the SEC that dates back to 2018, when he faced securities fraud charges related to statements about taking Tesla private.
While Musk’s legal team described the outcome as a full resolution of the disclosure issue, critics questioned the modest penalty, calling it insufficient given Musk’s vast wealth. The case also comes amid broader scrutiny of the SEC’s enforcement approach following leadership changes. Separately, Musk continues to face legal challenges, including a shareholder lawsuit related to his $44 billion acquisition of Twitter, with potential damages estimated in the billions.
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