New Delhi, May 5: Tech giant Elon Musk has agreed to pay a $1.5 million fine to the U.S. Securities and Exchange Commission (SEC) related to a 2022 dispute over his stake in Twitter.
The SEC accused Musk of increasing his stake in the company without informing Twitter’s shareholders. Reports indicate that a trust established by Musk will cover the fine to settle the lawsuit, pending court approval. However, Musk has not admitted to the SEC’s allegations.
According to U.S. media reports, this fine is significantly lower than the amount the SEC previously sought from Musk, which exceeded $200 million in December 2024.
In January 2025, just days before President Donald Trump took office, the SEC filed a lawsuit against Musk, alleging he violated the deadline for disclosing that he had acquired more than 5% of the social media platform’s shares.
The regulator stated that this delay resulted in over $150 million in losses for Twitter’s shareholders. Musk later acquired the company in 2022 and rebranded it as X.
An SEC spokesperson noted that if this settlement is finalized, it would represent the largest fine imposed by the agency for failing to file timely beneficial ownership reports against any entity or individual.
However, Musk’s attorney described the fine as “minor.”
In a statement, Musk’s lawyer Alex Spiro said, “As we have maintained from the beginning, Musk has been cleared of all cases related to late filings concerning the Twitter acquisition. A trust entity has agreed to a minor fine for a filing delay.”
Reports suggest that the SEC initially sought penalties, the return of illegal profits, and interest. The settlement announced on Monday only reflects the penalty.
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