Trump SEC lets Musk settle $150 million Twitter lawsuit for $1.5 million

The Trump administration is letting Elon Musk pay a $1.5 million fine to settle a lawsuit that originally sought at least $150 million. If approved by a federal court, the proposed settlement submitted yesterday would require a trust in Musk’s name to pay a $1.5 million civil penalty to the government.

The January 2025 lawsuit, filed in the last days of the Biden administration, relates to how Musk purchased a 9 percent stake in Twitter in 2022 and failed to disclose it within 10 days as required under US law. The Securities and Exchange Commission alleged that “Musk was able to continue purchasing shares at artificially low prices, allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due.”

Twitter’s stock price soared after Musk belatedly disclosed his stake, and he bought the company outright later in ...