Elon Musk Settles Historic SEC Case Over Twitter Purchase Disclosure

Elon Musk agreed to settle a civil lawsuit with the U.S. SEC over delays in disclosing his Twitter stock purchases. A trust in Musk's name will pay a $1.5 million penalty, marking the largest fine of its kind, without Musk admitting wrongdoing.

The U.S. Securities and Exchange Commission and Elon Musk have reached a settlement in a civil lawsuit surrounding Musk's delayed disclosure of his Twitter stock purchases in 2022. A trust associated with Musk will pay a $1.5 million penalty, though Musk will not surrender any allegedly saved funds. The settlement came to light in federal court in Washington, D.C.

In January 2025, the SEC alleged Musk's 11-day delay in disclosing his purchase of a 5% stake in Twitter allowed him to purchase additional shares at reduced prices. Though Musk claimed the delay was accidental, the SEC argued for financial penalties and a repayment of $150 million in purported savings. Previously, Musk had criticized the SEC's actions as a violation of his free speech rights.

The $44 billion acquisition of Twitter by Musk completed in October 2022. The civil penalty is reportedly the largest for this type of violation in SEC history, according to a source familiar with the matter. The SEC's pursuit of the $150 million was considered challenging to prove in court. Musk's fraught history with the SEC dates back to 2018, involving a previous securities fraud charge related to Tesla.