Elon Musk has agreed to a $1.5 million civil penalty to resolve claims brought by the Securities and Exchange Commission over his delayed disclosure of a significant stake in Twitter prior to acquiring the company in 2022.
The SEC alleged Musk failed to timely report his growing ownership position, allowing him to continue purchasing shares without alerting the market, which regulators said disadvantaged other investors. Musk publicly disclosed his holdings in April 2022 after surpassing a nine percent stake.
The agreement still requires approval from the federal judge overseeing the case before it becomes final.
The settlement follows a March verdict in federal court in California, where a jury found Musk misled Twitter investors ahead of his buyout in a separate class action case. His legal team is expected to challenge that ruling on appeal.
