Elon Musk to pay $1.5M to settle SEC lawsuit over failing to disclose Twitter share purchases ahead of 2022 acquisition

Elon Musk agreed to pay a $1.5M civil penalty to settle a U.S. Securities and Exchange Commission lawsuit accusing him of failing to properly disclose stock he was amassing in Twitter ahead of his $44B acquisition of the company in 2022 — a penalty he probably audibly laughed at behind closed doors. Musk consented to the settlement “without admitting or denying the allegations,” and the settlement also “permanently restrains and enjoins” Musk's trust “from violating Section 13(d) of the Securities Exchange Act of 1934.” The SEC sued Musk in January 2025, alleging that his undisclosed stock purchases cost other Twitter shareholders at least $150M because they sold shares at lower prices without knowing Musk was amassing shares in the company. The settlement is separate from a class-action civil suit in California where a jury in March 2026 found that Musk had artificially driven down Twitter's stock price in 2022, a verdict his lawyers said they will appeal.