Elon Musk has reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding a lawsuit that accused him of failing to disclose his 9% stake in Twitter within the legally required 10-day period. Originally filed in January 2025 during the Biden administration, the lawsuit sought at least $150 million in penalties. The SEC alleged that Musk's late disclosure allowed him to buy shares at artificially low prices, leading to an unjust enrichment of at least $150 million. Under the proposed settlement, Musk would pay a $1.5 million civil penalty through a trust established in his name, pending approval by a federal court. The Trump administration has amended the lawsuit to include the trust as a defendant, rather than Musk personally. This case highlights the SEC's strict liability enforcement under Section 13(d), which does not consider the intent behind the violation.