Elon Musk to pay $1.5 million to settle SEC case on Twitter stake

Billionaire entrepreneur Elon Musk has agreed to pay $1.5 million to settle a case brought by the US Securities and Exchange Commission (SEC) over the delayed disclosure of his stake in Twitter (now X), now known as X, according to multiple reports.

The settlement — subject to court approval — will be paid by the Elon Musk Revocable Trust, which the SEC named as a defendant in the case. The regulator alleged that the trust failed to promptly disclose beneficial ownership after crossing the 5 per cent stake threshold, in violation of disclosure rules under the Securities Exchange Act of 1934.

Without admitting or denying wrongdoing, the trust has agreed to a final judgment that includes a $1.5 million civil penalty and a permanent injunction against future violations of beneficial ownership disclosure requirements.

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 closing the case.

The regulator had earlier claimed that the delayed disclosure allowed Musk to continue purchasing shares at lower prices, resulting in losses of more than $150 million for other shareholders. Notably, the final penalty is far lower than the over $200 million the SEC had initially sought.

Musk’s lawyer reportedly downplayed the outcome, describing it as a “small fine” tied 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 issue.

Separately, Musk has also been engaged in a legal dispute with OpenAI and its CEO Sam Altman, alleging the organisation deviated from its original nonprofit mission. According to a recent court filing, Musk approached OpenAI president Greg Brockman for a possible settlement just days before a high-stakes trial began in a federal court in Oakland.

With IANS inputs