Overview
- The SEC and Elon Musk reached a deal Monday that has the Elon Musk Revocable Trust paying a $1.5 million civil penalty, subject to Judge Sparkle Sooknanan’s approval.
- Regulators added the revocable trust to the case and said they will seek to dismiss Musk personally if the court enters the consent judgment.
- U.S. rules require investors to disclose when they pass 5% ownership within 10 days, and the SEC alleges Musk waited 11 days in 2022 while buying more than $500 million in shares, estimating $150 million in savings.
- The agreement includes no admission of wrongdoing and no repayment of the alleged savings, drawing criticism as a modest penalty even as some reports describe it as a record for this type of violation.
- The settlement does not affect separate litigation, including a March jury verdict in San Francisco that found Musk misled Twitter investors, which his lawyers plan to challenge.