Home / Business and Economy / Musk Settles SEC Lawsuit Over Twitter Stake Disclosure
Musk Settles SEC Lawsuit Over Twitter Stake Disclosure
5 May
Summary
- Musk's trust paid a $1.5 million civil penalty to the SEC.
- The SEC alleged an 11-day delay in disclosing Twitter stake.
- Musk completed the $44 billion Twitter acquisition in October 2022.
Elon Musk has reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding a civil lawsuit. The case centered on allegations that Musk failed to timely disclose his initial purchases of Twitter shares in 2022. A trust associated with Musk agreed to pay a $1.5 million civil penalty. However, neither Musk nor the trust admitted any wrongdoing as part of the settlement.
The SEC had filed its lawsuit in January 2025, asserting that Musk's delay in revealing his stake was 11 days. This delay, occurring in late March and early April 2022, allegedly allowed Musk to acquire over $500 million worth of shares at prices deemed artificially low. The regulatory body had sought a civil fine and repayment of approximately $150 million.
Musk, who finalized his $44 billion acquisition of Twitter in October 2022, had previously labeled the delay as inadvertent. He also accused the SEC of infringing upon his free speech rights through their actions against him.
