Elon Musk has settled with the Securities and Exchange Commission (SEC) for $1.5 million following a protracted dispute over his delay in disclosing an acquisition of Twitter shares. Musk agreed to pay this fee without admitting wrongdoing, and the SEC will drop its case against him if the settlement receives court approval.
The dispute centers on Musk’s $44 billion takeover of Twitter in 2022. The SEC initiated its investigation in that year after Musk delayed for 11 days in reporting that he had acquired a stake exceeding 5 percent of the company. According to the SEC, this delay allowed Musk to save more than $150 million at the expense of Twitter shareholders.
During the investigation, the SEC accused Musk of employing “gamesmanship” to hinder the probe, specifically by avoiding subpoenas issued by the regulator. Musk countered by accusing the then-SEC chair, Gary Gensler, of “harassment.” Gensler left his position shortly after the lawsuit was filed, coinciding with the inauguration of President Donald Trump.
The $1.5 million penalty is reportedly the largest ever imposed by the SEC for the type of violation Musk was accused of, according to Reuters.
