Elon Musk, SEC in talks to settle government lawsuit over Twitter deal

Elon Musk is currently engaged in discussions with the Securities and Exchange Commission (SEC) regarding a lawsuit that the agency initiated last year. This legal action accuses Musk, the wealthiest individual globally, of breaching securities regulations in the lead-up to his acquisition of Twitter. In a recent court document filed on Tuesday, the SEC indicated that it is "engaged in discussions of a potential resolution" with Musk, suggesting that further legal proceedings might be avoided. The lawsuit, which was originally filed in January 2025, is being processed in a federal court located in Washington, D.C. Additionally, a separate class action lawsuit from former Twitter investors against Musk is progressing through a federal court in San Francisco, where jurors are anticipated to begin deliberations soon. Musk, who also serves as the CEO of Tesla and SpaceX, acquired Twitter for $44 billion in late 2022, subsequently rebranding it as X a year later. Before the purchase, Musk had amassed a stake in Twitter exceeding 5%, which mandated that he publicly disclose his holdings within a ten-day window upon reaching that threshold. However, he failed to file this disclosure on time. The SEC's complaint argues that Musk's delay in reporting his stake enabled him to purchase shares at "artificially low prices," disadvantaging other investors in the process. Neither Musk's legal team nor the SEC responded immediately to requests for comments on the matter. Previously, Musk had settled civil securities fraud allegations with the SEC concerning Tesla, resulting in a $20 million fine for both Musk and the company, along with a temporary relinquishment of Musk's position as chairman of Tesla's board.