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

On May 4, 2026, the SEC filed an amended complaint to add Elon Musk’s July 22, 2003 Revocable Trust (the “Revocable Trust”) as a defendant in 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., in violation of the beneficial ownership reporting requirements under the Securities Exchange Act of 1934 (“Exchange Act”).

The SEC simultaneously moved to enter a final consent judgment with respect to the revocable trust. Without admitting or denying the Complaint’s allegations with respect to the Revocable Trust, the Revocable Trust has agreed to enter a final judgment, subject to court approval, permanently enjoining it from violating Section 13(d) of the Exchange Act and Rule 13d-1 thereunder and ordering it to pay a civil penalty of $1.5 million.

As described in the Consent Order, if the Court issues the proposed final judgment on the Revocable Trust as proposed by the Revocable Trust and the SEC, the SEC will provide a stipulated dismissal of Elon Musk in his personal capacity, which will resolve this entire case.