The billionaire entrepreneur Elon Musk has finalized a deal with the U.S. Securities and Exchange Commission following an extended conflict regarding the delay in revealing his substantial ownership in Twitter. Under the agreement, Musk will hand over $1.5 million without conceding any fault, allowing the SEC to close the matter, according to the agency's announcement.
Should a judge ratify the accord, it would conclude the extended legal skirmish surrounding the initiation of Musk's $44 billion acquisition of Twitter back in 2022. The SEC launched its inquiry into Musk during that year, focusing on his 11-day postponement in reporting his purchase of over 5 percent of the platform's shares. Regulators claimed in court that this holdup enabled Musk to avoid more than $150 million in costs, to the detriment of existing Twitter investors.
As part of the probe, the SEC charged Musk with employing delaying tactics to hinder the investigation, including multiple instances of evading their legal summons. In response, Musk labeled the actions of former SEC leader Gary Gensler as 'harassment.' Gensler departed from his role shortly after the suit was initiated, coinciding with Donald Trump's presidential inauguration.
Reuters reports that this $1.5 million sanction marks the highest amount ever imposed by the SEC for the specific infraction attributed to Musk.