Elon Musk has reached a settlement with the U.S. Securities and Exchange Commission, resolving a civil lawsuit that accused him of delaying the disclosure of his initial Twitter purchases in 2022. Under the terms of the settlement revealed in a Washington, D.C., federal court on Monday, a trust in Musk’s name will pay a $1.5 million US civil fine.
Although Musk did not admit any wrongdoing, he will not have to forfeit any of the $150 million he allegedly saved due to the delayed disclosure. The settlement is subject to approval by U.S. District Judge Sparkle Sooknanan, who previously denied Musk’s attempt to dismiss the case in February.
This settlement marks the end of a seven-year legal battle between Musk and the SEC that began in September 2018 when the SEC charged him with securities fraud for claiming on Twitter that he had secured funding to potentially privatize his electric car company, Tesla.
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 anticipated from the start. The SEC declined to provide any comments on the matter.
In a lawsuit filed in January 2025, the SEC alleged that Musk’s 11-day delay in disclosing his initial five percent stake in Twitter allowed him to purchase over $500 million of shares at artificially low prices before eventually revealing a 9.2 percent stake. The SEC contended that Musk should pay a civil fine and reimburse the $150 million he purportedly gained at the expense of unsuspecting investors.
Musk defended the delay as unintentional and accused the SEC of infringing on his freedom of speech rights by targeting him. The lawsuit was filed six days before former U.S. President Joe Biden left office, and the current SEC Chairman Paul Atkins has been reshaping the regulator’s enforcement priorities.
A former chief of staff to a past SEC chair criticized the settlement, suggesting that it raises concerns about whether the SEC is prioritizing the protection of White House insiders over ordinary investors.
Regarding the separate civil suit related to Twitter, shareholders accused Musk of defrauding them by questioning the presence of fake accounts on the platform to renegotiate the takeover price or withdraw from the deal. They claimed that Musk’s statements led to a decline in Twitter’s stock price, resulting in losses for shareholders. The ongoing legal battle seeks damages of up to $2.5 billion.
Despite his involvement in various companies and regulatory investigations, Musk spearheaded cost-cutting initiatives in the second Trump administration before resuming his private sector activities. Most recently, Musk testified in a federal court trial over OpenAI, a company he co-founded, alleging that it deviated from its charitable goals and became a for-profit entity. He is seeking damages and leadership changes within OpenAI.
Musk’s acquisition of Twitter, integration into his xAI artificial intelligence company, and subsequent merger with SpaceX has solidified his status as one of the wealthiest individuals globally, with Forbes estimating his net worth at $789.9 billion.
