Tesla, X, and SpaceX CEO Elon Musk has agreed to pay a $1.5 million penalty to settle allegations brought by the U.S. Securities and Exchange Commission (SEC) over delayed disclosure of his stake in Twitter, now known as X.
The settlement relates to claims that Musk failed to inform regulators and the public in a timely manner in 2022 while accumulating a significant shareholding in Twitter. According to the SEC, this delay allowed him to avoid higher share prices, resulting in an estimated $150 million impact to other shareholders.
Musk later went on to acquire the entire company for $44 billion in late 2022 and rebranded it as X.
The SEC filed a lawsuit in January 2025, shortly before President Donald Trump’s second inauguration. The regulator alleged that Musk had exceeded the 5% ownership threshold in Twitter stock but failed to disclose his position within the required 10-day reporting window under U.S. securities law.
According to the complaint, Musk eventually disclosed that he had accumulated a 9% stake in the company, after which Twitter’s share price reportedly rose by 27%.
Under the settlement agreement, Musk did not admit to any wrongdoing. The resolution remains subject to approval by the court.
Musk’s acquisition of Twitter has been marked by prolonged legal disputes. After becoming the company’s largest shareholder, he initially considered joining its board before launching a hostile takeover bid. He later agreed to purchase the platform outright but attempted to withdraw from the deal, leading to litigation that ultimately forced him to complete the acquisition.
The SEC settlement comes amid ongoing legal scrutiny involving Musk. In recent days, he testified in a separate lawsuit concerning OpenAI, a company he co-founded, where he has accused its leadership of abandoning its original nonprofit mission. Court filings in that case have surfaced internal communications among senior tech executives, drawing further public attention to the dispute.
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