Elon Musk has reached a settlement with the U.S. Securities and Exchange Commission regarding the accusation of delayed disclosure of his initial Twitter purchases, now known as X. The settlement, disclosed in a Washington, D.C., federal court on Monday, involves a $1.5 million US civil fine to be paid by a trust in Musk’s name.
Musk, the world’s richest person, did not admit any wrongdoing and will not forfeit any of the $150 million he was alleged to have saved due to the delay. The settlement is subject to approval by U.S. District Judge Sparkle Sooknanan, who previously rejected Musk’s attempt to dismiss the case in February.
This settlement puts an end to over seven years of legal battles between Musk and the regulator, which began in September 2018 when the SEC charged him with securities fraud for a tweet about securing funding to potentially privatize Tesla. Musk settled that case by paying a $20 million civil fine, allowing Tesla lawyers to review some Twitter posts beforehand, and stepping down as Tesla’s chairman.
Musk’s lawyer, Alex Spiro, stated that Musk has been cleared of all issues related to the delayed filing of forms in the Twitter acquisition, as previously indicated. The SEC declined to provide any comment on the matter.
In the SEC’s lawsuit from January 2025, it was alleged that Musk’s 11-day delay in disclosing his initial five percent stake in Twitter allowed him to purchase over $500 million worth of shares at artificially low prices before revealing a 9.2 percent stake. The SEC argued that Musk should pay a civil fine and reimburse the $150 million he allegedly saved at the expense of unsuspecting investors.
Musk claimed the delay was inadvertent and accused the SEC of infringing on his free speech rights by targeting him. The SEC filed the lawsuit just before the end of the Biden administration and the start of the Trump administration, with current SEC Chairman Paul Atkins refocusing the regulator’s enforcement priorities.
A partner at the Dynamis law firm in New York, Robert Frenchman, noted that while the $1.5 million penalty may seem modest for the wealthiest person globally, it could serve as a deterrent for similar violations by others, sending a message that rules apply to everyone, including Elon Musk.
Musk finalized the $44 billion Twitter purchase in October 2022, integrating Twitter into his artificial intelligence company xAI and subsequently merging xAI into his rocket company SpaceX. Forbes magazine estimates Musk’s net worth at $789.9 billion.
The settlement discussions between both parties commenced on March 17, following the abrupt departure of SEC enforcement chief Margaret Ryan. The case is distinct from another civil lawsuit where a San Francisco jury found Musk liable for defrauding Twitter shareholders by announcing a buyout.
Musk’s legal team, led by Spiro, seeks to have the case dismissed or a new trial, citing bias and prejudice towards Musk as the reason for the verdict. Despite leading various companies with interests involving the government and facing multiple regulatory investigations, Musk spearheaded cost-cutting initiatives during the second Trump administration before returning to his private sector activities.
Recently, Musk testified in a federal court in Oakland, California, for three days in a lawsuit concerning OpenAI, which he claims as his brainchild. Musk alleges that OpenAI improperly shifted to a for-profit model, straying from its original charitable goals, and is seeking damages of $150 million along with the removal of key executives from the company’s leadership.