New Delhi: Billionaire Elon Musk will pay $1.5 million to settle an SEC case over delayed disclosure of his stake in Twitter, now known as X, according to reports.
The settlement, which is subject to court approval, will be paid by the Elon Musk Revocable Trust, which the SEC added as a defendant in the case, the regulator said.
The regulator has alleged that the trust failed to timely disclose beneficial ownership after crossing the 5 per cent stake threshold in Twitter, in violation of disclosure requirements under the Securities Exchange Act of 1934.
Without admitting or denying the allegations, the trust has consented to a final judgment that includes a $1.5 million civil penalty and a permanent injunction against future violations of beneficial ownership disclosure rules.
As part of the agreement, the SEC said it would move to dismiss Musk in his personal capacity if the court approves the settlement, effectively resolving the case in full.
The SEC had earlier alleged that the delayed disclosure allowed Musk to acquire shares at lower prices, costing shareholders over $150 million.
The penalty is significantly lower than the more than $200 million the regulator had initially sought to settle the case.
In addition, Musk’s lawyer reportedly described the settlement as a ‘small fine’, maintaining that the issue related to a delay in a single filing.
The case, filed in January 2025, is separate from an ongoing class-action lawsuit by investors over the same disclosure lapse.
Notably, Musk engaged in a legal battle with OpenAI and its CEO, Sam Altman, alleging the firm deviated from its nonprofit mission to pursue commercial interests. He approached OpenAI President Greg Brockman for a possible settlement just two days before the high-stakes trial began in a federal court in Oakland, according to a recent filing.
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–IANS
