Elon Musk has resolved the civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) for reportedly delaying the disclosure of his initial Twitter purchases, now known as X, in 2022. According to 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. Musk, the wealthiest individual globally, did not admit any wrongdoing and will not forfeit any of the $150 million he purportedly saved due to the delay.
The settlement, which awaits approval from U.S. District Judge Sparkle Sooknanan, concludes over seven years of legal disputes between Musk and the SEC. The conflict began in September 2018 when the SEC accused Musk of securities fraud for claiming he had secured funding to potentially privatize his electric car company, Tesla, through a tweet.
Musk settled the previous case by paying a $20 million civil fine, allowing Tesla’s lawyers to review certain Twitter posts in advance, and stepping down as Tesla’s chairman. His lawyer, Alex Spiro, asserted that Musk has been exonerated from all issues related to the late filing of forms for the Twitter acquisition, as anticipated.
The SEC, which declined to comment on the matter, had alleged in its January 2025 lawsuit that Musk’s 11-day delay in disclosing his initial five percent Twitter stake allowed him to purchase over $500 million worth of shares at artificially low prices before eventually revealing a 9.2 percent stake. Musk defended the delay as unintentional and accused the SEC of infringing on his free speech rights.
The settlement amount, although considered modest for the richest person on Earth, may serve as a deterrent against similar violations by others, according to legal experts. Musk completed the $44 billion acquisition of Twitter in October 2022, subsequently integrating it into his artificial intelligence company, xAI, which was later merged into his rocket company, SpaceX. Musk’s net worth is estimated at $789.9 billion by Forbes magazine.
Meanwhile, a separate civil suit related to Twitter is ongoing, where Musk was found liable for defrauding Twitter shareholders after announcing the buyout. Shareholders in that lawsuit allege that Musk’s statements led to a decline in Twitter’s stock price, causing them financial losses. The damages in that case could amount to $2.5 billion, as per their estimates.
Despite Musk’s involvement in multiple companies with government interactions and facing various regulatory investigations, he spearheaded cost-cutting initiatives during the second Trump administration before returning to his private sector endeavors. Recently, Musk testified in federal court over a lawsuit involving OpenAI, a company he co-founded, alleging that it deviated from its charitable objectives and should revert to being a nonprofit organization.
The resolution of the SEC lawsuit comes amidst ongoing legal battles and regulatory scrutiny surrounding Musk’s business ventures, highlighting the complex legal landscape he navigates as a prominent entrepreneur and innovator.