Musk agrees to pay $1.5 mn over Twitter share buying
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Washington DC: Elon Musk has moved to resolve a major federal lawsuit concerning his 2022 acquisition of Twitter. On Monday, a trust representing Musk agreed to pay a $1.5 million fine to the Securities and Exchange Commission (SEC) to settle allegations that he broke stock market rules.
The core of the case involved a mandatory 10-day deadline for investors to disclose when their ownership in a company surpasses 5%.
According to the SEC, Musk waited an extra 11 days to reveal his growing position in Twitter, a move that allegedly saved him roughly $150 million by allowing him to continue buying shares at lower prices.
Despite these claims, the settlement does not require Musk to repay the estimated savings or admit to any illegal activity. His attorney, Alex Spiro, described the outcome as a ‘clearing’ of all issues.
If approved by a federal judge, the deal will officially drop Musk as a defendant and end the litigation. This marks the second time Musk has reached a settlement with the SEC, following a $20 million fine in 2018 regarding his Tesla ‘funding secured’ posts.
Photo Credits: AFP
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