- SEC lawsuit alleges Musk failed to timely disclose >5% Twitter ownership
- Musk was able to buy Twitter shares at an artificially low price
- The two parties are working on an out-of-court settlement
A new SEC filing has confirmed that the commission is now in talks with Elon Musk to resolve an ongoing lawsuit over his Twitter takeover.
The 2025 lawsuit accuses Musk of failing to disclose an ownership stake of more than 5% in Twitter within the required 10 days — a deadline he missed by 11 days.
By delaying the disclosure, Musk was able to buy over $500 million in shares at artificially low prices, putting other investors at a disadvantage.
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Musk in talks to settle lawsuit over takeover of Twitter
As a result, the SEC sought $150 million in penalties—the amount he is said to have saved by disclosing 11 days late on April 4, 2022, instead of March 24, 2022.
“On April 4, 2022, after Musk filed the Schedule 13G, Twitter’s stock price rose more than 27% to close at $49.97 per share, compared to a close of $39.31 per share the previous trading day,” the SEC wrote in 2025.
However, both parties have informed a court in Washington DC that they are in active discussions to reach a settlement. The judge has since been asked to extend the March 18 deadline by two weeks to April 1 to allow time for those negotiations.
“The parties are engaged in discussions regarding a potential settlement that would mean additional proceedings may not be necessary,” the SEC filing reveals.
This isn’t the first time Elon Musk has had a fight with the Commission – in 2018, he and his car company Tesla were both forced to pay $20 million each.
Twitter, which was delisted as a public company after Musk’s takeover and now trades as X, falls under xAI ownership and itself falls under SpaceX ownership. More than three years after Twitter went private, SpaceX could now consider an IPO that would make X/Twitter public again, though not as a single entity.
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