"Elon Musk has settled the Securities and Exchange Commission's case against him over his late disclosure of a stake in Twitter ahead of the 2022 takeover, agreeing to pay a $1.5m civil penalty without any admission of wrongdoing."
"The SEC alleged that Musk's late disclosure cost Twitter shareholders approximately $150m collectively, while the settlement amount of $1.5m is less than 1% of the alleged harm."
"Musk crossed the 5 percent threshold for required disclosure of his Twitter stake on 14 March 2022, but did not file the required Schedule 13D until 4 April, an 11-day delay during which he continued to acquire Twitter shares."
Elon Musk has agreed to a $1.5m civil penalty after settling a SEC case regarding his late disclosure of a Twitter stake prior to the 2022 takeover. The SEC alleged that Musk's delay in filing a Schedule 13D caused approximately $150m in harm to shareholders. Musk's late disclosure occurred after he crossed the 5% threshold for required reporting. The settlement is notable for being the largest civil penalty for this type of violation, yet it represents less than 1% of the alleged harm.
Read at TNW | Insider
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