Elon Musk agreed to pay a $1.5 million civil penalty to settle a case brought by the U.S. Securities and Exchange Commission (SEC).
The case focused on his delayed disclosure of Twitter share purchases in 2022, the agreement was filed in a federal court in Washington, D.C. A judge must still approve it before it becomes final. The payment will come from a trust linked to Musk.
The SEC said Musk broke disclosure rules during the Twitter takeover process. The rules require investors to report when they cross 5 percent ownership within 10 days. The regulator said Musk missed this deadline by about 11 days. During that time, he kept buying shares. The SEC estimated that he may have gained about $150 million from buying at lower prices before full disclosure. The settlement does not require repayment of that amount. It also includes no admission of wrongdoing.
Musk’s legal team said the case only involved a late filing. They denied any misconduct. They said the settlement closes the issue fully. However, Musk still faces a separate lawsuit in California. That case involves claims from investors about his public statements during the 2022 Twitter takeover. The lawsuit is still ongoing. It could lead to large damages if courts rule against him, but an appeal is expected.
