'Further ⁠proceedings might not be necessary': Elon Musk and SEC in talks to settle Twitter deal lawsuit

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SEC and Musk are in active discussions to reach a settlement

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  • SEC lawsuit alleges Musk failed to disclose >5% Twitter ownership in time
  • Musk was able to buy Twitter shares at an artificially low price
  • The two parties are working on a settlement outside of court

A new SEC filing has confirmed that the Commission is now in talks with Elon Musk to resolve an ongoing lawsuit over his Twitter takeover.

The 2025 court case accuses Musk of failing to disclose a more than 5% stake in Twitter within the required 10 days – a deadline he missed by 11 days.

By delaying discloser, Musk was able to buy over $500 million in shares 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 he is said to have saved by disclosing 11 days late on April 4, 2022, instead of March 24, 2022.

"On April 4, 2022, after Musk filed the Schedule 13G, Twitter’s stock price increased more than 27%, closing at $49.97 per share compared to a close of $39.31 per share the prior trading day," the SEC wrote in 2025.

However both parties have advised a Washington DC court that they are in active discussions 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 of a potential resolution that would mean further proceedings might not be necessary," the SEC filing discloses.

This isn't the first time Elon Musk has had a running with the Commission – in 2018, he and his car company Tesla were both forced to pay $20 million each.

Twitter, delisted as a public company upon Musk's takeover and now trading as X, falls under xAI ownership, itself falling under SpaceX ownership. More than three years after Twitter went private, SpaceX could now be considering an IPO, which would take X/Twitter public again, though not as a sole entity.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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