Musk vs. SEC, Dispute Ongoing Since 2018 Moves Toward Settlement

[The Financial News] The long-running legal battle between Elon Musk and the United States Securities and Exchange Commission (SEC) appears to be nearing an end.
On the 17th (local time), British media reported that "Musk and the SEC have begun working toward a settlement in the lawsuit over his delayed disclosure of a stake in X (formerly Twitter)." According to the reports, the two sides said they are "discussing a potential resolution that would not require further legal proceedings." They have also reportedly asked Judge Sparkle Leah Sooknanan of the United States District Court for the District of Columbia to push back the deadline for setting the next schedule from March 18 to April 1.
The controversy over Musk’s late disclosure of his X stake first surfaced in 2022. The SEC said it had opened an investigation because Musk, while moving to acquire X, "failed to comply with disclosure obligations under securities law and revealed that he held a 5% stake in X 11 days after the deadline." In 2025, the agency then filed a securities fraud lawsuit against him. Musk’s side argued it was a "simple mistake" and asked the court either to dismiss the case or transfer it to Texas, where he believed the venue would be more favorable, but both requests were rejected.
This is not the first time the SEC and Musk have clashed in court. Back in 2018, the SEC charged him with securities fraud over a social media post in which he wrote that he was "considering taking Tesla private." The two sides ultimately settled the case. Under the deal, Musk stepped down as chair of Tesla’s board for three years and agreed that company lawyers would review his social media posts before they were published. Separately, Musk and Tesla each paid a civil penalty of 20 million dollars, totaling about 29.8 billion won.
In 2021, the SEC again opened an investigation after Musk posted a poll asking whether he should sell 10% of his Tesla stock. Musk responded by suing in 2022, claiming that the SEC was infringing on his freedom of speech, but he lost the case.
Regarding the latest developments, British media explained that if the two sides reach a settlement, it would bring to a close a series of disputes between the SEC and Musk that began in September 2018 and have been marked by repeated legal battles.
The shift is also being interpreted as part of a broader change that followed the inauguration of Donald John Trump’s administration, when pro-business figure Paul S. Atkins became an SEC commissioner. Since taking office, Atkins has halted several investigations and lawsuits against cryptocurrency platforms and rolled back a number of regulatory tightening measures.
whywani@fnnews.com Hong Chae-wan Reporter