WASHINGTON — Billionaire entrepreneur Elon Musk has agreed to a settlement in a US government lawsuit related to his acquisition of Twitter, now known as X, over alleged violations of stock disclosure rules during the 2022 takeover process.
Under the agreement filed in a Washington federal court, Musk’s trust will pay a $1.5 million penalty to resolve claims brought by the U.S. Securities and Exchange Commission (SEC). The settlement still requires approval from a federal judge.
The case stemmed from allegations that Musk failed to disclose within the required 10-day period that he had crossed the 5% ownership threshold in Twitter shares while quietly building his stake ahead of the $44 billion acquisition.
According to the SEC, the delay in disclosure allowed Musk to continue purchasing shares at lower prices, potentially saving him an estimated $150 million, while other investors sold without full knowledge of his involvement.
Musk’s attorney, Alex Spiro, described the outcome as a vindication, insisting his client did not admit wrongdoing. He said the trust agreed only to a minor penalty for a late filing and maintained that the case had effectively been dismissed.
The SEC, however, stated that the settlement resolves the matter by dropping Musk as a defendant, while holding his trust responsible for the filing delay.
The agreement includes no requirement for Musk to return any alleged financial gains from the delayed disclosure and only mandates the fine alongside a commitment to comply with future reporting requirements.
The case is part of broader legal scrutiny surrounding Musk’s 2022 Twitter takeover, which has also included separate litigation in California. In March, a jury found that Musk misled investors through public statements during the acquisition process, with potential damages in that case estimated at up to $2 billion. Musk has indicated plans to appeal.
This is not Musk’s first regulatory settlement with the SEC. In 2018, he paid $20 million and stepped down as chairman of Tesla following allegations over misleading tweets about taking Tesla private.
