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Musk-Linked Trust Settles SEC Case Over Delayed Twitter Stake Disclosure
(MENAFN) A trust associated with billionaire Elon Musk has agreed to pay $1.5 million to settle a lawsuit brought by the US Securities and Exchange Commission (SEC) over delayed disclosure of a significant stake in Twitter, now known as X, according to reports.
In a statement issued Monday, the SEC said it had updated its complaint to include the “Elon Musk Revocable Trust Dated July 22, 2003” as a defendant in the case.
The amended filing alleges that the defendants failed to submit a required beneficial ownership report on time after the trust acquired more than 5% of Twitter’s common stock.
The SEC also confirmed that it has requested federal court approval for a consent final judgment against the trust.
Under the proposed agreement, the trust would pay a civil penalty of $1.5 million without admitting or denying the allegations. The settlement would also permanently prohibit the trust from violating federal rules on beneficial ownership disclosure.
The agreement still requires court approval before it can take effect.
If approved, the SEC said it would drop Elon Musk from the case in his personal capacity, effectively closing the legal proceedings.
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