Elon Musk and SEC in talks to settle lawsuit over Twitter deal
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The SEC accused Elon Musk of failing to promptly disclose that he amassed an active stake in Twitter in 2022.
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In a court filing on Tuesday, the SEC revealed that it's "engaged in discussions of a potential resolution that would mean further proceedings might not be necessary" with Musk. The SEC initially filed the suit in January 2025, and the case is proceeding in a federal court in Washington, D.C. A separate class action lawsuit filed by former Twitter investors against Musk is now winding its way through a federal court in San Francisco, with a jury expected to deliberate soon. Musk, who is also CEO of Tesla and SpaceX, purchased Twitter for $44 billion in late 2022 and changed the name to X the following year. Prior to the acquisition, he'd built up a position in the company of greater than 5%, which would've required disclosing his holdings to the public within 10 calendar days of reaching that threshold. He was late to file that disclosure. The SEC said in its complaint that Musk's failure to disclose the stake allowed him to buy shares at "artificially low prices," putting other investors at a disadvantage. Attorneys for Musk and the SEC didn't immediately respond to a request for comment. Musk previously settled civil securities fraud charges brought by the SEC at Tesla . Musk and his auto company each had to pay $20 million in fines, and Musk had to temporarily relinquish his role as chairman of the Tesla board. WATCH: Musk merger complicates SpaceX IPO watch now VIDEO 3:50 03:50 Musk merger complicates SpaceX IPO TechCheck Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Ge...
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