Billionaire investor and entrepreneur Elon Musk has settled an outstanding case with the Securities and Exchange Commission. The enforcement action was in regard to Musk’s takeover of Twitter, now called X.
The allegation was that Musk delayed his disclosure of his purchases of Twitter shares, thereby violating notice rules.
According to multiple reports, the agreement carries a $1.5 million penalty.
According to reports, Musk passed the 5% holding hurdle of the then-public firm on March 14, 2022. The deadline for notifying the holders was March 24th, ten days later, but Musk did not file by that date.
Musk eventually filed the necessary form on April 4th, 2022, potentially saving many millions of dollars, as Twitter’s shares would have risen in value once Musk disclosed his interest in purchasing shares in the firm. On April 4th, 2022, shares of Twitter popped by 27%.
Musk was sued by the SEC in January 2025 for violating established rules.
Musk eventually purchased Twitter and took it private for $44 billion, or $54.20 per share in cash. Before the deal was revealed, Twitter was valued at around $41 billion.
xAI acquired X for $33 billion in equity in March 2025. The combined firm is far different today than it was when Musk purchased it, a move described as saving free speech due to the extreme bias by top management at Twitter.
The $1.5 million is a pittance for Musk, who is the wealthiest person on the planet.
At the same time, it is believed that X has yet to cross the profitability threshold.
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