A trust in Elon Musk's name will pay a $1.5 million civil penalty to settle a U.S. Securities and Exchange Commission lawsuit alleging he delayed disclosing his acquisition of a 5% stake in Twitter in March and April 2022. The SEC claimed the 11-day delay allowed Musk to buy over $500 million in shares at artificially low prices, costing unsuspecting investors potential losses.

The SEC had sought a civil fine and the return of $150 million Musk allegedly saved through the delay, but the settlement does not require disgorgement. Musk denied intentional misconduct, calling the disclosure lapse inadvertent, and accused the SEC of targeting him in violation of his free speech rights.

The settlement was filed Monday in the U.S. District Court in Washington, D.C. The court will review the agreement for approval at a hearing scheduled for April 15, 2025.