Elon Musk to settle Twitter lawsuit with feds for a pittance
▼ Summary
– On May 4, 2026, the SEC filed an amended complaint adding the Elon Musk Revocable Trust as a defendant.
– The amended complaint alleges the Trust failed to timely file a beneficial ownership report after acquiring over 5% of Twitter, Inc. common stock.
– The SEC moved for a consent final judgment against the Trust, which consented without admitting or denying the allegations.
– The proposed judgment would permanently enjoin the Trust from violating Section 13(d) of the Exchange Act and impose a $1.5 million civil penalty.
– If the court approves the consent judgment, the SEC will dismiss Elon Musk in his personal capacity, resolving the entire case.
On May 4, 2026, the U.S. Securities and Exchange Commission updated its legal complaint against Elon Musk, formally adding the Elon Musk Revocable Trust as a defendant in the case. The trust, established on July 22, 2003, is accused of violating beneficial ownership reporting rules under the Securities Exchange Act of 1934. Specifically, the SEC alleges that the trust failed to file the required report after acquiring more than five percent of Twitter, Inc.’s outstanding common stock.
In a simultaneous move, the SEC requested court approval for a consent final judgment involving the trust. While the trust neither admits nor denies the SEC’s allegations, it has agreed to the proposed settlement. If approved by the court, the judgment would permanently bar the trust from violating Section 13(d) of the Exchange Act and its related rules. Additionally, the trust would pay a civil penalty of $1.5 million.
According to the consent motion, if the court signs off on this settlement, the SEC will then dismiss its claims against Elon Musk personally. That step would effectively resolve the entire case, bringing the long-running dispute over Twitter stock disclosures to a close.
(Source: The Verge)
