The U.S. Securities and Exchange Commission (SEC) announced a settlement on May 4, 2026, with the Elon Musk Revocable Trust to resolve allegations regarding the delayed disclosure of Twitter stock purchases. The agreement requires the trust to pay a $1.5 million civil penalty.
According to The Verge, the SEC had previously alleged that Musk failed to disclose his purchase of more than $500 million in Twitter stock on time during the spring of 2022. The agency claimed this delay allowed Musk to save at least $150 million while harming investors who sold their shares during that window.
As reported by Reuters, the SEC amended its complaint to add the Elon Musk Revocable Trust, dated July 22, 2003, as a defendant. The amended filing alleges the trust failed to file a timely beneficial ownership report after acquiring more than five percent of Twitter, Inc. common stock, violating the Securities Exchange Act of 1934.
The SEC simultaneously moved for entry of a consent final judgment as to the Revocable Trust. While the trust will pay the $1.5 million penalty, the agreement does not require the defendants to admit or deny the allegations, nor does it require Musk to return the money he allegedly saved.
If the court approves the judgment, the trust will be permanently enjoined from violating Section 1-d of the Exchange Act and Rule 13d-1. The settlement occurs as Musk’s separate legal battle with OpenAI continues, as Musk's lawsuit against Sam Altman remains active in court.
This legal resolution comes a week after the Trump administration took over, following a period where the department had alleged Musk's disclosure failures caused significant financial discrepancies.
