Musk, SEC Explore Settlement Over Twitter Stock Lawsuit
According to a filing submitted on Tuesday to the district court in Washington by the SEC and Musk’s legal team, both parties indicated that they had “met and held consultations” regarding the matter.
The document noted that the sides are engaged in talks about a “potential resolution” that might eliminate the need for further court hearings. To support these ongoing negotiations, they requested that the court postpone the deadline for submitting a joint status report by two weeks, setting the new date to April 1.
The SEC initially brought the lawsuit against Musk in January, focusing on his purchases of Twitter shares, the platform now known as X, which is owned by the tech entrepreneur.
The complaint alleged that Musk violated federal securities laws by not timely filing a report with the SEC that disclosed his acquisition of more than 5% of Twitter’s shares in March 2022.
According to the SEC, this delay enabled Musk to keep purchasing shares at lower prices, potentially allowing him to “underpay by at least $150 million.”
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