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BumRushDaShow

(172,397 posts) Mon May 4, 2026, 07:20 PM May 4

SEC settles with Elon Musk over Twitter dispute

Source: The Hill

05/04/26 5:58 PM ET

The Securities and Exchange Commission (SEC) has reached a settlement with Elon Musk over the delayed disclosure of his stake in Twitter, the platform now known as X, according to court documents.

Musk, who purchased the social platform for $44 billion in late 2022, will pay a $1.5 million civil penalty. The settlement resolves a lawsuit filed by the agency in January 2025, shortly before President Trump retook office.

The SEC accused the tech mogul of failing to properly disclose when his stake in then-Twitter surpassed 5 percent, as he increased his shares in the company in early 2022. He disclosed the stake in April of that year, when he owned more than 9 percent of Twitter. The agency argued this allowed him to underpay for his shares by more than $150 million.

The settlement marks the end of a years-long legal battle between Musk and the SEC, which began investigating his purchase of Twitter shares in 2022. The probe eventually turned contentious when Musk refused to sit for another deposition, and the SEC asked a judge to compel him to testify.

Read more: https://thehill.com/policy/technology/5862980-elon-musk-sec-settlement-twitter/

9 replies

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Highlight:

SEC settles with Elon Musk over Twitter dispute (Original Post) BumRushDaShow May 4 OP

well dweller May 4 #1

Oh yeah RussBLib May 4 #2

Equivalent to me paying a fine of .3 cents n/t Polybius May 4 #3

If you look at his net worth conservatively to be $780B fujiyamasan May 5 #8

I fear that trump forced the SEC to settle LetMyPeopleVote May 4 #4

should have fined him the entire $150million Musk saved RussBLib May 4 #5

Exactly. nt SunSeeker May 4 #6

The $1.5 million settlement is a joke LetMyPeopleVote May 7 #9

Well that will learn him angrychair May 4 #7

dweller

(28,718 posts)

1. well

Reply to BumRushDaShow (Original post)

Mon May 4, 2026, 07:26 PM

May 4

Im sure he learned a lesson

✌🏻

RussBLib

(10,758 posts)

2. Oh yeah

Reply to dweller (Reply #1)

Mon May 4, 2026, 07:56 PM

May 4

$1.5 million is pocket change to this Nazi

Polybius

(22,126 posts)

3. Equivalent to me paying a fine of .3 cents n/t

Reply to BumRushDaShow (Original post)

Mon May 4, 2026, 08:04 PM

May 4

fujiyamasan

(2,063 posts)

8. If you look at his net worth conservatively to be $780B

Reply to Polybius (Reply #3)

Tue May 5, 2026, 02:36 AM

May 5

$1.5M is 0.000192% of his net worth.

LetMyPeopleVote

(182,221 posts)

4. I fear that trump forced the SEC to settle

Reply to BumRushDaShow (Original post)

Mon May 4, 2026, 08:32 PM

May 4

I am a corporate law/securities lawyer. It is well established law that one has to make a public report with the Securities and Exchange Commission when they have more than 5% of the stock of a public company. When one is doing a public takeover, you time the moment that you go over 5% carefully and after you cross that threshold, there is race to buy as much stock as possible.

Elon Musk ignore this statutory requirement. The court is right that Musk broke the law and has no excuse. By breaking the law, Musk admits that he save himself $150 million in the takeover of Twitter, Inc.

Judge hands Trump ally a stinging rebuke in court

www.rawstory.com/elon-musk-26...
— Eliz PhotoClique (@elizphotoclique.bsky.social) 2026-02-03T21:56:37.849Z

https://www.rawstory.com/elon-musk-2675076231/

One of President Donald Trump's most vocal allies received a stinging rebuke on Tuesday in a lawsuit against the president's Securities and Exchange Commission.

In a new order, Judge Sparkle L. Sooknanan of the District of Columbia dismissed a lawsuit filed by Elon Musk over his failure to disclose his ownership stake in Twitter before he officially acquired the company in 2022. Musk had filed a lawsuit challenging the constitutionality of the disclosure requirements. Sooknanan argued Musk was ignoring a "straightforward application of the law."

Sooknanan also said Musk didn't deny any of the charges the SEC levied against him. By ignoring disclosure rules, the SEC claimed Musk saved himself about $150 million in the Twitter purchase and caused "substantial economic harm" to investors by artificially keeping the stock price down.

In 2022, Elon Musk began acquiring large amounts of Twitter stock and quickly surpassed the SEC's disclosure requirements. Once someone reaches a 5% ownership stake in a publicly traded company, they must notify the agency and disclose certain information to the public.

Musk claimed the disclosure rules are unconstitutionally vague, forced him to speak against his will, and were being selectively applied against him. Sooknanan rejected all of his arguments.

This is NOT a close legal issue. So far this is a civil matter but I have seen people prosecuted for violation of the 13(d) requirement.

RussBLib

(10,758 posts)

5. should have fined him the entire $150million Musk saved

Reply to LetMyPeopleVote (Reply #4)

Mon May 4, 2026, 09:40 PM

May 4

instead of a piddly $1.5 million.

SunSeeker

(58,375 posts)

6. Exactly. nt

Reply to RussBLib (Reply #5)

Mon May 4, 2026, 10:53 PM

May 4

LetMyPeopleVote

(182,221 posts)

9. The $1.5 million settlement is a joke

Reply to RussBLib (Reply #5)

Thu May 7, 2026, 06:07 PM

May 7

Link to tweet

#ElonMusk has agreed to pay $1.5M to settle an SEC lawsuit alleging he failed to properly disclose his initial shares of Twitter purchased ahead of acquiring the platform:

• The suit alleges Musk’s undisclosed stock purchases cost other Twitter shareholders at least $150M because they sold shares at lower prices without knowing that Musk was amassing shares in the company

• Musk consented to the settlement “without admitting or denying the allegations”

angrychair

(12,545 posts)

7. Well that will learn him

Reply to BumRushDaShow (Original post)

Mon May 4, 2026, 11:24 PM

May 4

Now he only saves $148.5 million dollars by breaking the law. Hah! See, crime doesn't pay.

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