Musk Settles SEC Suit Over Twitter Disclosures

Elon Musk settled a civil lawsuit with the U.S. Securities and Exchange Commission (SEC) on May 4, 2026, regarding his delayed disclosure of initial Twitter stock purchases in 2022. A trust in Musk's name will pay a $1.5 million civil penalty without admitting wrongdoing, as disclosed in Washington, D.C., federal court.

The SEC's January 2025 lawsuit alleged Musk's 11-day delay in revealing his initial 5% Twitter stake in March and April 2022 allowed him to acquire over $500 million in shares at artificially low prices before disclosing a 9.2% stake. The SEC had sought a civil fine and repayment of $150 million in alleged savings. Musk maintained the delay was inadvertent and accused the SEC of targeting him.

This settlement marks the largest civil penalty of its type in SEC history. It follows the departure of SEC enforcement chief Margaret Ryan and comes three months asourceser a U.S. District Judge rejected Musk's attempt to dismiss the case. This resolution is separate from a March 20, 2026, civil lawsuit where a San Francisco jury found Musk liable for defrauding Twitter shareholders during the acquisition process.