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Elon Musk settles SEC lawsuit over Twitter disclosures, $1.5 million penalty imposed
A trust in Musk’s name will pay the penalty without admitting wrongdoing, and the SEC will not recover the $150 million it sought.
- On Monday, Elon Musk settled an SEC lawsuit regarding his 2022 Twitter disclosure delay, with a trust in his name paying a $1.5 million civil penalty without admitting wrongdoing.
- The SEC alleged that Musk's 11-day delay in disclosing his initial 5% Twitter stake allowed him to purchase shares at "artificially low prices," violating the required 10-day disclosure window.
- While regulators previously sought $150 million in repayment, the settlement does not require Musk to surrender those alleged gains. Musk has maintained a fraught relationship with the SEC since his 2018 Tesla securities fraud settlement.
- U.S. District Judge Sparkle Sooknanan must still approve the proposed settlement filed on Monday, following her rejection of Musk's dismissal bid three months prior.
- Current SEC Chairman Paul Atkins has been refocusing the regulator's enforcement priorities as Musk remains embroiled in separate litigation with OpenAI CEO Sam Altman over alleged nonprofit conversion breaches.
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Former SEC official calls Elon Musk's $1.5M fine over delayed Twitter disclosure 'embarrassing' for government
Elon Musk settled the U.S. Securities and Exchange Commission's civil lawsuit accusing the world's richest person of waiting too long in 2022 to disclose his initial purchases of Twitter, now known as X. A trust in Musk's name will pay a $1.5 million US fine.
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Coverage Details
Total News Sources102
Leaning Left17Leaning Right18Center15Last UpdatedBias Distribution36% Right
Bias Distribution
- 36% of the sources lean Right
36% Right
L 34%
C 30%
R 36%
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