Elon Musk has consented to pay a fee of $1.5 million to the Securities and Exchange Commission (SEC) to resolve a lengthy dispute regarding his investment in Twitter. This settlement, pending court approval, concludes a protracted investigation into Musk's delayed disclosure of his acquisition of a significant stake in the social media platform.
The SEC's inquiry began in 2022 after Musk failed to report that he had acquired over 5 percent of Twitter within the mandated timeframe, which was an 11-day delay. This oversight, according to the SEC, resulted in Musk saving more than $150 million to the detriment of Twitter's shareholders. The commission characterized Musk's actions as "gamesmanship" aimed at stalling the investigation.
In response, Musk alleged that the SEC's former chair, Gary Gensler, was engaging in "harassment." Gensler's tenure ended shortly after the lawsuit was initiated as President Donald Trump assumed office. The penalty Musk faces is noted to be the largest ever imposed by the SEC for such violations.