NEW DELHI — Elon Musk has agreed to pay $1.5 million to settle a U.S. Securities and Exchange Commission case tied to 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. The SEC had added the trust as a defendant in the case.
The regulator alleged that the trust failed to disclose beneficial ownership on time after Musk’s holdings crossed the 5% threshold in Twitter, violating disclosure requirements under the Securities Exchange Act of 1934.
Without admitting or denying the allegations, the trust agreed to a final judgment that includes a $1.5 million civil penalty and a permanent injunction against future violations of beneficial ownership disclosure rules.
The SEC said it would move to dismiss Musk in his personal capacity if the court approves the settlement, effectively resolving the case.
The regulator previously alleged that the delayed disclosure allowed Musk to buy additional Twitter shares at lower prices, costing shareholders more than $150 million.
The penalty is far below the more than $200 million the SEC had initially sought to settle the matter. Musk’s lawyer reportedly characterized the settlement as a “small fine,” saying the issue involved a delay in a single filing.
The case was filed in January 2025 and is separate from an ongoing investor class-action lawsuit over the same disclosure issue.
Musk has also been involved in a separate legal dispute with OpenAI and CEO Sam Altman, alleging the company strayed from its nonprofit mission in favor of commercial interests. According to a recent filing, Musk approached OpenAI President Greg Brockman about a possible settlement two days before a federal trial in Oakland was set to begin. (Source: IANS)
