Daijiworld Media Network – Washington

Washington, May 5: Billionaire entrepreneur Elon Musk has settled a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which accused him of delaying the disclosure of his initial investment in Twitter, now known as X, in 2022.

As part of the settlement disclosed on Monday in a Washington, D.C. federal court, a trust in Musk’s name will pay a civil penalty of $1.5 million. The agreement was reached without Musk admitting any wrongdoing, and he will not be required to forfeit any alleged gains from the delay.

The SEC had filed the lawsuit in January 2025, alleging that Musk failed to timely disclose his acquisition of more than a 5% stake in Twitter in late March and early April 2022. According to the regulator, the 11-day delay allowed Musk to purchase additional shares worth over $500 million at artificially low prices.

The agency had sought a financial penalty along with repayment of approximately $150 million, which it claimed Musk saved at the expense of other investors.

Musk, however, maintained that the delay was inadvertent and criticised the SEC, accusing it of targeting him and infringing on his free speech rights.

He went on to complete the $44 billion acquisition of Twitter in October 2022, later rebranding the platform as X.