The US Securities and Exchange Commission’s lawsuit against tech billionaire Elon Musk in connection with his share purchases during the takeover of Twitter is expected to end with a payment of 1.5 million dollars.
May 5, 2026, 5:41 a.mMay 5, 2026, 5:41 a.m
In a settlement, Musk and the SEC agreed on this amount. The fine is only a fraction of the $150 million that the authority says Musk saved by violating the rules. The settlement is first presented to the responsible judge for confirmation.
Elon Musk “saved” around $150 million by informing shareholders too late.Image: keystone
In the lawsuit filed in early 2025, the SEC accused Musk of not disclosing in a timely manner that his stake in the online platform exceeded the five percent mark when he purchased Twitter shares in 2022. This meant he was able to buy more shares cheaper.
SEC: Shareholders suffered financial damage
The agency analyzed Musk’s purchases and concluded that he got off more than $150 million cheaper as a result of the late mandatory disclosure. However, the shareholders who sold their shares to him during this time would have suffered financial damage. The SEC originally demanded that Musk repay the sum – and fork out an additional fine. According to Musk’s lawyers, the SEC wanted $200 million in an earlier settlement offer.
Musk failed in his attempt to have the lawsuit dismissed in February. His lawyers had argued that the SEC applied laws selectively and that the lawsuit attacked his right to free speech. However, Judge Sparkle Sooknanan saw no reason to dismiss the lawsuit.
Missed deadline
The tech billionaire began buying Twitter shares on the market at the beginning of 2022. The SEC noted in its lawsuit that its stake reached five percent on March 14, 2022. According to US rules, he would have had to make this public within ten calendar days. However, Musk only announced on April 4th – eleven days too late – that he already held nine percent. The stock price then jumped 27 percent, the SEC highlighted.
Twitter became X
Musk spent a total of around $44 billion on the purchase of Twitter, which was completed in October 2022. For the majority of the sum, he sold shares in the electric car manufacturer Tesla, which he runs. Musk also took out loans worth around twelve billion dollars. Thanks to his holdings in Tesla and the space company SpaceX, which he also runs, Musk is by far the richest person in the world. The financial service Bloomberg currently estimates his assets at $657 billion. (sda/dpa)