Billionaire Elon Musk has agreed to a $1.5 million settlement with the US Securities and Exchange Commission (SEC) for delayed disclosure of his stake in Twitter, now known as X. The settlement, pending court approval, will be paid by the Elon Musk Revocable Trust, a defendant in the case as per the SEC.
The SEC accused the trust of failing to promptly disclose beneficial ownership upon surpassing the 5% stake threshold in Twitter, violating disclosure rules. Without admitting guilt, the trust agreed to a final judgment involving a $1.5 million civil penalty and a permanent injunction against future violations.
As part of the deal, the SEC plans to drop Musk from the case if the court sanctions the settlement, effectively resolving the matter. The SEC had claimed that the delayed disclosure allowed Musk to buy shares at lower prices, resulting in a loss of over $150 million for shareholders.
The penalty, although lower than the initial $200 million sought by the SEC, was termed a ‘small fine’ by Musk’s lawyer, who emphasized it was due to a delay in a single filing. This case, initiated in January 2025, is distinct from an investor class-action lawsuit over the same disclosure delay.
