Elon Musk to pay $1.5 million to settle SEC case on Twitter stake

NEW DELHI: Billionaire entrepreneur Elon Musk has agreed to pay $1.5 million to settle a case with the US Securities and Exchange Commission (SEC) over delayed disclosure of his stake in Twitter (now known as X), according to multiple reports.

The settlement which is subject to court approval, will be paid by the Elon Musk Revocable Trust, which the SEC added as a defendant in the case, the regulator said.

The regulator has alleged that the trust failed to timely disclose beneficial ownership after crossing the 5 per cent stake threshold in Twitter, in violation of disclosure requirements under the Securities Exchange Act of 1934.

Without admitting or denying the allegations, the trust has consented to a final judgment that includes a $1.5 million civil penalty and a permanent injunction against future violations of beneficial ownership disclosure rules.

As part of the agreement, the SEC said it would move to dismiss Musk in his personal capacity if the court approves the settlement, effectively resolving the case in full.