Elon Musk has agreed to settle a U.S. Securities and Exchange Commission lawsuit over delayed disclosure of his stake in Twitter, now known as X, by paying a $1.5 million civil penalty without admitting wrongdoing.
- The SEC alleged Musk waited 11 days in 2022 to disclose he had acquired more than a 5% stake in Twitter.
- Regulators said the delay allowed Musk to purchase over $500 million in shares at lower prices.
- The SEC estimated the delay cost shareholders more than $150 million.
- Musk will pay the penalty through a trust and is not required to disgorge alleged gains.
- The settlement does not include an admission of wrongdoing and remains subject to court approval.
- The SEC filed the lawsuit in January 2025, shortly before Musk’s acquisition of Twitter was finalized.
- Musk has previously said the disclosure delay was inadvertent and criticized the SEC’s actions.
- Musk completed the $44 billion acquisition of Twitter in October 2022 and later rebranded it as X.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
