$1.5M Settlement Ends Musk-SEC Lawsuit Over Twitter Shares

Elon Musk has settled the case with the US Securities and Exchange Commission regarding his initial investments in Twitter, which is now called X. According to the SEC, Musk delayed informing the general public about his statement of purchasing stocks in X in 2022. Due to this delay, Musk was able to buy additional shares at a reduced cost.

As per this agreement, a trust associated with Musk has agreed to pay a $1.5 million fine. However, it is subject to a judge’s approval. This case can be seen as part of the ongoing saga of conflict between Musk and the SEC. In 2018, the SEC sued Musk for making misleading statements regarding taking Tesla private via social media. To settle this matter, Musk paid $20 million in fines.

The SEC claimed Musk delayed reporting his first 5% stake in X by 11 days. During that time, he increased his stake to over 9%. The SEC said this gave him an unfair advantage and saved him money. Musk said the delay was a mistake also accused the SEC of unfairly targeting him. Some experts say the the $1.5 million fine is small for someone as wealthy as Musk, but it still sends a message that rules apply to everyone.

Musk completed his $44 billion purchase of X in October 2022. Later, he merged the platform into his AI company xAI and then into SpaceX. This settlement does not affect another civil lawsuit where a San Francisco jury found Musk responsible for misleading Twitter shareholders. They claim his statements caused stock prices to drop, leading to large financial losses.

Overall, the settlement ends this particular dispute, but Musk still faces other legal challenges.

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