Billionaire Musk Settles SEC Twitter Stake Case With $1.5 Million
NEW DELHI- Billionaire entrepreneur Elon Musk has agreed to pay $1.5 million to settle a case with the U.S. Securities and Exchange Commission over the delayed disclosure of his stake in Twitter, now known as X, according to multiple reports.
The settlement, which remains subject to court approval, will be paid by the Elon Musk Revocable Trust, which the SEC added as a defendant in the case.
The regulator alleged that the trust failed to timely disclose beneficial ownership after crossing the 5 percent stake threshold in Twitter, in violation of disclosure requirements under the Securities Exchange Act of 1934.
Without admitting or denying the allegations, the trust consented to a final judgment that includes a $1.5 million civil penalty and a permanent injunction against future violations of beneficial ownership disclosure rules.
As part of the agreement, the SEC said it would move to dismiss Elon Musk in his personal capacity if the court approves the settlement, effectively resolving the case in full.
The SEC had earlier alleged that the delayed disclosure allowed Musk to acquire shares at lower prices, costing shareholders more than $150 million.
The penalty is significantly lower than the more than $200 million the regulator had initially sought to settle the case.
In addition, Elon Musk’s lawyer reportedly described the settlement as a “small fine,” maintaining that the matter related to a delay in a single filing.
The case, filed in January 2025, is separate from an ongoing class-action lawsuit filed by investors over the same disclosure lapse. (IANS)
