The SEC has reached a settlement with Elon Musk’s revocable trust over allegations the billionaire failed to timely disclose his growing stake in Twitter in 2022. Under a proposed order filed Thursday, the trust will pay a $1.5 million fine-a fraction of the $150 million the regulator originally sought-and is permanently enjoined from violating Section 13(d) disclosure rules. The trust neither admitted nor denied the allegations.
Musk lawyer Alex Spiro said the settlement clears Musk personally, calling it a win: “A trust vehicle has agreed to a small fine for being late on one filing.”
The deal comes just weeks after a federal jury in a separate civil trial found Musk liable for making false statements about Twitter’s bot counts-statements he made while trying to back out of his $44 billion acquisition. Shareholders in that class action claim the falsehoods caused them to sell stock at artificially low prices; damages could reach $2.5 billion.