Elon Musk settles SEC lawsuit over delayed Twitter stake disclosure, agrees to $1.5 million penalty

Elon Musk has reached a settlement with the US Securities and Exchange Commission, resolving a civil lawsuit that accused him of delaying disclosure of his initial stake in Twitter (now called X) in 2022. The agreement, disclosed in a Washington, DC federal court, brings an end to a high-profile dispute over Musk’s trading disclosures during his eventual $44 billion takeover of the platform.

Under the terms of the settlement, a trust in Musk’s name will pay a $1.5 million civil penalty. Musk has neither admitted nor denied wrongdoing and will not be required to return any profits the regulator alleged he gained by delaying the disclosure.

The SEC’s lawsuit, filed in January 2025, had argued that Musk failed to promptly reveal that he had acquired more than a 5% stake in Twitter in late March 2022. According to the regulator, the disclosure came 11 days late, during which time Musk continued to accumulate shares.

Must read: ‘I came up with the idea’: Elon Musk in court, questions OpenAI’s shift under Sam Altman

By the time Musk publicly disclosed his holdings, his stake had risen to 9.2%. The SEC alleged that the delay enabled him to purchase more than $500 million worth of shares at prices that did not yet reflect his growing interest in the company. It is estimated that Musk may have saved as much as $150 million at the expense of other investors.

Musk, however, maintained that the delay was inadvertent. He also accused the regulator of targeting him unfairly, arguing that the enforcement action infringed on his free speech rights.

“Mr. Musk has now been cleared of all issues related to the late filing of forms in the Twitter acquisition, as we said from the outset he would be,” his lawyer Alex Spiro said in a statement.

Must read: OpenAI case narrows as Musk withdraws fraud allegations before key trial; here's what we know

This is not Musk’s first run-in with the regulator. In 2018, the SEC charged him with securities fraud over his claim that he had “secured” funding to take Tesla private. That case ended in a settlement requiring Musk to pay a $20 million fine, step down as Tesla’s chairman, and subject certain public communications to legal oversight.

The latest settlement comes months after a US judge rejected Musk’s attempt to dismiss the case, allowing it to proceed before both sides opted to resolve the matter.