Elon Musk has agreed to a resolution with the Securities and Exchange Commission (SEC) following a protracted disagreement with the financial watchdog regarding when he revealed his substantial ownership position in Twitter. Under the terms of the agreement, Musk will pay a $1.5 million penalty without acknowledging any fault, allowing the SEC to close its legal action, according to the regulator.
Subject to judicial approval, this resolution concludes the lengthy conflict concerning the initial stages of his $44 billion acquisition of Twitter in 2022. The SEC launched an inquiry into Musk that same year due to his 11-day postponement in reporting his acquisition of over 5% of the company. The SEC contended in litigation that this delay ultimately benefited Musk by more than $150 million while disadvantaging Twitter’s investors.
Throughout the investigation, the SEC alleged that Musk employed “gamesmanship” to obstruct the probe by repeatedly evading the regulator’s subpoenas. In response, Musk criticized then-SEC chair Gary Gensler for “harassment.” Gensler departed his role shortly after the lawsuit against Musk was filed, as President Donald Trump assumed office.
According to Reuters, the $1.5 million fine represents “the most substantial penalty in SEC history for the specific type of violation he was accused of.”