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Elon Musk, CEO of Tesla, has agreed to settle a lawsuit filed against him for belatedly disclosing his share purchase during the acquisition of Twitter (now X) for $1.5 million (approximately 2.2 billion won).
According to a settlement application submitted to the U.S. District Court for the District of Columbia on the 4th (local time), the U.S. Securities and Exchange Commission (SEC) agreed to conclude the lawsuit on the condition that Musk's side pays a civil penalty of $1.5 million.
However, the entity paying the fine is not CEO Musk personally, but 'The Elon Musk Revocable Trust dated July 22, 2003,' a personal trust established by Musk.
CEO Musk also conducted the acquisition of Twitter shares under the name of this trust.
If the court approves this settlement, the SEC plans to withdraw its lawsuit against CEO Musk.
The fine under this settlement is significantly reduced compared to the $200 million originally demanded by the SEC. Furthermore, the settlement does not stipulate the return of illegal profits or other provisions against CEO Musk.
Alex Spiro, representing CEO Musk, stated in a statement, "Musk is completely free from the document filing issues related to the Twitter acquisition," and "The trust has agreed to pay a small fine for the delayed submission of one document."
However, the settlement stipulates that Musk's side cannot make statements denying the allegations, such as claiming that the contents raised by the SEC in its complaint are untrue.
The SEC filed a lawsuit in January 2025, claiming that CEO Musk failed to disclose within the deadline that he had accumulated more than 5% of Twitter's stock, causing investors who sold their shares unknowingly to suffer losses of over $150 million.
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