- SEC lawsuit alleges Musk failed to timely disclose >5% ownership of Twitter
- Musk was able to buy Twitter shares at an artificially low price
- The two sides are working on a settlement out of court.
A new filing with the SEC has confirmed that the Commission is now in talks with Elon Musk to resolve an ongoing lawsuit over his acquisition of Twitter.
The 2025 court case accuses Musk of failing to disclose a stake of more than 5% in Twitter within the required 10 days, a deadline he missed by 11 days.
By delaying disclosure, Musk was able to buy more than $500 million worth of shares at artificially low prices, putting other investors at a disadvantage.
Article continues below.
Musk in talks to resolve Twitter acquisition lawsuit
As a result, the SEC was seeking $150 million in fines, the amount it is said to have saved by disclosing it 11 days late, on April 4, 2022, instead of March 24, 2022.
“On April 4, 2022, after Musk filed a Schedule 13G, Twitter’s stock price increased more than 27%, closing at $49.97 per share compared to a close of $39.31 per share on the previous trading day,” the SEC wrote in 2025.
However, both sides have informed a Washington DC court that they are in active talks to reach an agreement. The judge has since been asked to extend the March 18 deadline by two weeks to April 1, to allow time for these negotiations.
“The parties are engaged in discussions regarding a possible resolution that would mean that further proceedings may not be necessary,” the SEC filing reveals.
This is not the first time that Elon Musk has faced the Commission: in 2018, he and his car company Tesla were forced to pay $20 million each.
Twitter, excluded from the list of public companies after Musk’s acquisition and now listed as X, belongs to xAI and, in turn, to SpaceX. More than three years after Twitter went private, SpaceX could now be considering an IPO, which would see X/Twitter go public again, although not as a single entity.
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