Elon Musk will settle the feds’ Twitter lawsuit with pocket change

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Follow Follow See All Policy Elon Musk will settle the feds’ Twitter lawsuit with pocket change The SEC claimed Musk saved over $150 million by breaking the disclosure rules, now it’s settling for $1. The SEC claimed Musk saved over $150 million by breaking the disclosure rules, now it’s settling for $1. by Richard Lawler Close Richard Lawler Senior News Editor Posts from this author will be added to your daily email digest and your homepage feed.

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Follow Follow See All by Richard Lawler May 4, 2026, 10:11 PM UTC Link Share Gift Image: Laura Normand / The Verge Part Of The entire story of Twitter / X under Elon Musk see all updates Richard Lawler Close Richard Lawler Posts from this author will be added to your daily email digest and your homepage feed. Follow Follow See All by Richard Lawler is a senior editor following news across tech, culture, policy, and entertainment. He joined The Verge in 2021 after several years covering news at Engadget.

Last year, the SEC sued Elon Musk over the way his acquisition of Twitter (now X, and a part of SpaceX) started, and today it announced a settlement that looks like a massive bargain, while Musk’s own lawsuit against Sam Altman continues to play out . A week before the Trump administration took over, the department had alleged that by not disclosing he’d purchased more than $500 million in Twitter stock on time in the spring of 2022, Musk underpaid by at least $150 million, and harmed investors who sold their stock during that time. Now, as reported by , the SEC has added the Elon Musk Revocable Trust to its lawsuit, which will settle the case by paying a $1.

5 million civil penalty without admitting wrongdoing or requiring Musk to cough up any of the money he allegedly saved. On May 4, 2026, the U. Securities and Exchange Commission filed an amended complaint to add the Elon Musk Revocable Trust dated July 22, 2003 (the “Revocable Trust”) as a defendant to this action.

The amended complaint alleges that the defendants failed to timely file a beneficial ownership report with the Commission after the Revocable Trust acquired beneficial ownership of more than five percent of the outstanding shares of Twitter, Inc. common stock, in violation of the beneficial ownership reporting requirements under the Securities Exchange Act of 1934 (“Exchange Act”). The SEC simultaneously moved for entry of a consent final judgment as to the Revocable Trust.

This advance offers important signals about the future of the sector, and the tech world is watching closely.