S.E.C. Settles Lawsuit Against Elon Musk Over His Twitter Disclosures
The Securities and Exchange Commission reached a $1.5 million settlement with Elon Musk over allegations that he hid his purchases of Twitter stock in 2022. Musk's revocable trust will pay the settlement, which is the largest penalty ever for this type of case.
The Securities and Exchange Commission settled a lawsuit against Elon Musk, requiring his revocable trust to pay $1.5 million. The S.E.C. accused Musk of hiding purchases of Twitter stock in 2022 and not disclosing them in a timely manner, allowing him to underpay when buying Twitter for $44 billion. Musk began buying Twitter shares in January 2022 and passed a 5 percent ownership threshold in mid-March 2022, but did not disclose his stake until April 4, 2022. The S.E.C. claimed that Musk saved $150 million by waiting to disclose his stake. The settlement ends a Biden administration-era case against Musk. The agreement helps Musk reduce his legal entanglements as SpaceX prepares for an initial public offering.
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