Elon Musk has settled the civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) concerning his initial purchases of Twitter stock, now known as X. The settlement involves a payment of $1.5 million by the Elon Musk Revocable Trust, without Musk admitting any wrongdoing.
The SEC had previously sued Musk regarding how his acquisition of Twitter started. The lawsuit alleged that by failing to disclose that he purchased more than $500 million in Twitter stock in the spring of 2022, Musk had underpaid by at least $150 million and harmed investors who sold their stock during that time.
In its January 2025 filing, the SEC further stated that Musk’s 11-day delay in revealing his initial 5% Twitter stake, in late March and early April 2022, allowed him to buy shares at artificially low prices before he eventually revealed a 9.2% stake.
As part of the settlement process, the SEC filed an amended complaint on May 4, 2026, adding the Elon Musk Revocable Trust dated July 22, 2003, as a defendant. This complaint alleged that the defendants failed to timely file a beneficial ownership report with the Commission after the Revocable Trust acquired beneficial ownership of more than five percent of the outstanding shares of Twitter, Inc. common stock, violating the beneficial ownership reporting requirements under the Securities Exchange Act of 1934.
The Revocable Trust consented to a final judgment, subject to court approval, agreeing to pay a $1.5 million civil penalty. This judgment also permanently enjoined the Trust from violating Section 13(d) of the Exchange Act and Rule 13d-1 thereunder.
When the court enters this proposed final judgment, the SEC will file a stipulated dismissal of Elon Musk in his personal capacity. This action is expected to resolve the case in its entirety. Consequently, the $1.5 million payment will be made by the Trust, and Musk will not have to give up any money he allegedly saved from the delay.