Elon Musk Agrees to $1.5 Million Settlement in SEC Lawsuit Over Twitter Disclosure

Tue, 05 May 2026 13:13:00 +0200

Elon Musk has reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding a civil lawsuit that claimed he intentionally misled Twitter shareholders during his 2022 acquisition of the platform. The SEC alleged that Musk failed to disclose that he had crossed the 5% ownership threshold for 11 days, potentially saving $150 million. Under the settlement, Musk does not admit wrongdoing but will have a trust in his name pay a $1.5 million civil penalty. This agreement must be approved by U.S. District Judge Sparkle Sooknanan and closes years of disputes between Musk and the SEC, which began in 2018 with a separate case over Tesla tweets. While critics say the penalty is modest given Musk's wealth, legal experts note it sends a message that regulations apply to all investors. Musk had previously argued that the delay was accidental and accused the SEC of infringing on his free speech rights. The settlement comes amid Musk's ongoing business ventures, including foldin