The Trump administration's SEC has agreed to let Elon Musk settle a $150 million lawsuit for just $1.5 million over his delayed disclosure of Twitter stock purchases in 2022. The original lawsuit, filed in the final days of the Biden administration, alleged Musk's late disclosure allowed him to buy shares at artificially low prices. The settlement, which requires court approval, represents a 99% reduction from the original penalty sought.
Background
US securities law requires investors to disclose when they acquire more than 5% of a company's stock within 10 days. Elon Musk's delayed disclosure of his Twitter stake in 2022 allowed him to continue buying shares at lower prices before the market reacted to his investment.
- Source
- Ars Technica
- Published
- May 6, 2026 at 01:07 AM
- Score
- 7.0 / 10