Elon Musk Settles Lawsuit With the SEC
Wall Street Journal
Last updated: May 5, 2026
The Securities and Exchange Commission (SEC) has accused Elon Musk of failing to report his acquisition of Twitter shares promptly. This alleged non-disclosure occurred approximately four years prior to Musk's takeover of the social media company, which he subsequently rebranded.
- The SEC's complaint, filed in the Southern District of New York, centers on Musk's accumulation of more than 5% of Twitter's stock without making a timely public filing.
- According to federal regulations, investors must disclose their holdings once they reach this threshold, typically within ten days.
- Musk reportedly began amassing his Twitter stake in January 2022 and crossed the 5% reporting threshold early that month.
- However, he did not file the necessary Schedule 13D disclosure until April 2022, after his stake had grown significantly and he had already made a substantial offer to buy the company.
- The SEC asserts that this delay allowed Musk to acquire more shares at a lower price than he would have been able to if the market had been aware of his substantial interest.
- The regulatory body is seeking to bar Musk from serving as an officer or director of any public company as part of its legal action.
