Elon Musk settled with the SEC for $1.5 million to resolve allegations he failed to properly disclose his growing stake in Twitter. The payment from a Musk revocable trust avoids admission of guilt but resolves a lawsuit that claimed the delay cost shareholders more than $150 million. The settlement represents a fraction of the $200 million+ the SEC originally sought.

The SEC lawsuit, filed in January 2025, centered on Musk missing the deadline to report he owned more than 5% of the social media platform. Once disclosed, Twitter shares surged 27%, illustrating how the nondisclosure potentially deprived early sellers of substantial gains. Musk later acquired the company in 2022, renamed it X, and the case was closely watched for how it might be affected by Trump's administration.

Musk's attorney maintained the allegations would typically warrant only a nominal penalty, dismissing the SEC case as "a waste of this court's time and taxpayer resources." The settlement resolves a probe that began in 2022 and involved Musk skipping a deposition to attend a SpaceX rocket launch.