Elon Musk has settled a U.S. Securities and Exchange Commission civil lawsuit over his delayed disclosure of purchases of Twitter, now X. A trust in Musk's name will pay a $1.5 million civil penalty, without admitting wrongdoing.
The SEC had accused Musk of waiting 11 days before revealing his initial 5% stake in Twitter in March 2022, allowing him to buy over $500 million in shares at artificially low prices. The agency sought a $150 million repayment.
Musk called the delay inadvertent and accused the SEC of violating his free speech rights. His lawyer Alex Spiro said in a statement that Musk has been cleared of all issues related to the late filing.
The settlement was announced Monday in Washington federal court, just days after SEC enforcement chief Margaret Ryan abruptly departed. Current Chairman Paul Atkins has been refocusing the regulator's priorities.
The $1.5 million penalty is the largest on record for this type of violation. Musk's contentious relationship with the SEC dates back to 2018, when he settled securities fraud charges over tweets about taking Tesla private.