- SEC lawsuit alleges Musk failed to timely disclose more than 5% ownership of Twitter
- Musk was able to buy Twitter shares at an artificially low price
- Both sides working on out-of-court settlement
A new SEC filing has confirmed that the Commission is currently in talks with Elon Musk to resolve an ongoing lawsuit over his takeover of Twitter.
The 2025 lawsuit 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 purchase more than $500 million in stock at artificially low prices, putting other investors at a disadvantage.
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Musk in talks to settle Twitter takeover lawsuit
As a result, the SEC was seeking $150 million in penalties – the amount it would have saved by disclosing 11 days late on April 4, 2022, instead of March 24, 2022.
“On April 4, 2022, after Musk filed Schedule 13G, Twitter’s stock price increased more than 27%, closing at $49.97 per share, up from $39.31 per share the previous trading day,” the SEC wrote in 2025.
However, both parties informed a Washington DC court that they were in active talks 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 these negotiations.
“The parties are engaged in discussions regarding a potential resolution which would mean that further proceedings may not be necessary,” the SEC filing reveals.
This isn’t the first time Elon Musk has run before the Commission: In 2018, he and his automaker Tesla were both forced to pay $20 million each.
Twitter, removed from the list of public companies during the takeover by Musk and now marketed under the name X, belongs to xAI, itself owned by SpaceX. More than three years after Twitter went private, SpaceX may now be considering an IPO, which would make X/Twitter public again, but not as a single entity.
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