Trump SEC lets Musk settle $150 million Twitter lawsuit for $1.5 million
Summary
The Securities and Exchange Commission (SEC) under President Donald Trump is allowing Elon Musk to settle a lawsuit about his late disclosure of buying Twitter shares by paying a $1.5 million fine instead of the original $150 million sought. The settlement involves Musk’s trust paying the fine without Musk admitting or denying wrongdoing.Key Facts
- The SEC sued Elon Musk in January 2025 over his late disclosure of buying 9% of Twitter shares in 2022.
- Musk failed to report his ownership stake within 10 days as required by law, which the SEC said let him buy shares at lower prices and underpay by about $150 million.
- The Trump SEC proposed a deal where Musk’s trust pays a $1.5 million penalty, much less than the initial demand.
- The trust agreed to be legally blocked from further violations of the disclosure rule but did not admit guilt.
- Musk’s lawyers say Musk is cleared personally because the fine applies to the trust, not him.
- A federal judge rejected Musk’s attempt to dismiss the SEC case, saying Musk did not challenge the facts but questioned the law’s constitutionality.
- Separately, a jury found Musk liable for false statements about Twitter’s bot accounts in a different lawsuit.
- Musk tried to move the SEC case to Texas and dismiss it but failed both times.
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