Overview
- SEC and Musk disclosed the proposed deal Monday in Washington, D.C., with his revocable trust set to pay a $1.5 million civil penalty.
- U.S. rules require investors to disclose crossing 5% ownership within 10 days, and the SEC said Musk filed 11 days late in 2022 after buying more than $500 million in Twitter shares and saving about $150 million.
- The agreement requires approval from U.S. District Judge Sparkle Sooknanan, includes no admission of wrongdoing, and does not require disgorgement of the alleged savings.
- People familiar with the settlement said the fine is the largest the SEC has imposed for this specific kind of beneficial-ownership disclosure violation.
- The SEC action remains separate from a San Francisco class case, where a jury in March found Musk liable over statements during the buyout period and where his lawyers are seeking to undo the verdict.