Elon Musk Agrees to Fine Over Twitter Share Case

WASHINGTON: (Web Desk) – Elon Musk has agreed to pay a $1.5 million penalty to resolve a government lawsuit related to his 2022 acquisition of Twitter.

The case, filed in a Washington federal court, accused Musk of violating stock market disclosure rules by failing to promptly inform regulators as he accumulated shares in Twitter ahead of his $44 billion takeover.

Under US regulations, investors must disclose when they acquire more than five percent of a publicly traded company within 10 days. According to the Securities and Exchange Commission, Musk missed this deadline by 11 days while building his stake.

Regulators argued that the delay allowed Musk to continue purchasing shares at lower prices, potentially saving around $150 million while other investors remained unaware of his growing position.

However, under the proposed agreement, Musk’s trust will pay the fine without admitting any wrongdoing and commit to complying with disclosure rules in the future. The settlement still requires approval from a federal judge.

Elon Musk’s Tesla pay package valued at $158 billion for 2025

Musk’s lawyer, Alex Spiro, described the outcome as a win for his client, maintaining that Musk had done nothing wrong and emphasizing that the case against him would be dropped once the agreement is finalized.

The SEC stated that it has amended the complaint to include Musk’s trust as a defendant and will remove Musk personally from the case if the court approves the deal.

The lawsuit was initially filed shortly before former US President Joe Biden left office. Musk had attempted to have the case dismissed earlier this year, but a federal judge rejected the request.

This development follows a separate legal battle in California, where a jury recently found Musk liable for misleading investors during the turbulent 2022 Twitter acquisition. Potential damages in that case could reach up to $2 billion, though his legal team plans to appeal.

This is not Musk’s first settlement with the SEC. In 2018, he paid $20 million and stepped down as chairman of Tesla after making controversial claims about taking the company private.