Elon Musk has resolved a civil lawsuit with the U.S. Securities and Exchange Commission regarding the delayed disclosure of his initial Twitter purchases in 2022. A trust in Musk’s name will pay a $1.5 million civil fine as part of the settlement revealed in a Washington, D.C., federal court on Monday.
Under the settlement, Musk, who did not admit any wrongdoing, will not have to forfeit any of the $150 million he purportedly saved due to the delayed disclosure. The agreement is subject to approval by U.S. District Judge Sparkle Sooknanan, who had previously denied Musk’s attempt to dismiss the case in February.
This settlement marks the end of over seven years of legal battles between Musk and the regulatory body, which originated in September 2018 when the SEC accused him of securities fraud for tweeting about securing funding to potentially privatize his electric car company, Tesla.
Musk had previously settled a similar case by paying a $20 million civil fine, allowing Tesla lawyers to review some of his Twitter posts in advance, and relinquishing his role as Tesla’s chairman.
In a statement, Musk’s lawyer, Alex Spiro, affirmed that Musk has been exonerated from any issues related to the delayed filing of forms in the Twitter acquisition, as previously indicated.
The SEC, declining to comment on the matter, had filed a lawsuit in January 2025 alleging 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.
Musk defended the delay as unintentional and accused the SEC of infringing on his freedom of speech by singling him out for investigation.
The SEC filed the lawsuit just before former U.S. President Joe Biden left office, with the current SEC Chairman, Paul Atkins, redirecting the regulator’s enforcement priorities.
A former chief of staff at the SEC, Amanda Fischer, highlighted the settlement as a cause for public concern over the agency potentially favoring White House insiders over ordinary investors.
Despite the modest $1.5 million penalty imposed on Musk, legal experts believe it could serve as a deterrent against similar violations in the future, emphasizing that the rules apply to everyone, including prominent figures like Elon Musk.
Following the $44 billion Twitter acquisition in October 2022, Musk integrated Twitter into his artificial intelligence company, xAI, and subsequently merged xAI with his rocket company, SpaceX. Forbes magazine currently values Musk at $789.9 billion.
The settlement follows discussions between both parties to resolve the matter, coinciding with the abrupt departure of SEC enforcement chief Margaret Ryan, who left her position after clashes with agency leaders over enforcement matters.
The ongoing civil lawsuit, separate from the SEC settlement, involves Musk being held liable for defrauding Twitter shareholders by a San Francisco jury on March 20. Shareholders alleged that Musk’s comments led to a drop in Twitter’s stock price, causing losses for investors. Musk’s legal team seeks to dismiss the case or push for a new trial, citing bias against the defendant.
Despite his involvement in various companies with government dealings and facing multiple regulatory investigations, Musk spearheaded cost-cutting initiatives during the second Trump administration before transitioning back to his private sector activities.
Most recently, Musk testified in federal court in Oakland, California, over a lawsuit concerning OpenAI, a company he co-founded. Musk alleges that OpenAI deviated from its charitable goals, becoming a for-profit entity, and is seeking damages of $150 million and the removal of specific individuals from the company’s leadership roles.