WASHINGTON, March 18, 2026, 11:25 EDT.
Elon Musk and the U.S. Securities and Exchange Commission are negotiating a potential settlement of the government’s lawsuit tied to his lag in disclosing Twitter share purchases back in 2022, according to a court filing. That development could sidestep more hearings in Washington. The settlement talks emerged just as a San Francisco jury began deliberating a separate shareholder suit focused on Musk’s statements about fake accounts during the $44 billion Twitter buyout.
Timing is key here. These talks surface just as SEC Chairman Paul Atkins shifts parts of the agency’s enforcement priorities, offering Musk an opportunity to wrap up one of the lingering major regulatory battles over his Twitter stake-building—before the Washington case heads further into litigation.
The timing was notable: the revelations surfaced just as the San Francisco jury began deliberations, putting Musk under pressure on two different fronts tied to that 2022 deal. Settling with the SEC would clear him of the regulator’s penalty demands—about $150 million in alleged savings, according to the SEC—but the separate shareholder lawsuit still threatens him with damages.
The SEC and Elon Musk are seeking more time for their legal timetable, according to a Tuesday filing. Both parties requested that U.S. District Judge Sparkle Sooknanan extend the next scheduling deadline to April 1, pushing it back from March 18, citing ongoing settlement talks. The SEC wouldn’t comment, and Musk’s legal team didn’t respond right away, Reuters said.
The Financial Times, referencing court documents, said Musk’s legal team sought to engage senior SEC officials for discussions, leaving out the agency’s trial lawyers—a move that caught Sooknanan off guard during a March 4 hearing. According to the FT, Musk’s lawyers also pushed back on any suggestion of White House ties.
The Washington case centers on a disclosure rule: investors must alert the market within 10 calendar days after passing the 5% threshold in any public company. According to the SEC, Musk held off for 11 days in early 2022, giving him time to buy over $500 million in Twitter shares before anyone else knew he’d crossed the line.
The regulator is pushing for a civil penalty and wants Musk to return roughly $150 million they claim he held onto. Musk argues any delay was unintentional. He’s also accused the SEC of singling him out, and just last month failed to get the case dismissed. Any settlement at this stage would mark the latest episode in his protracted battle with the agency, stretching back to the 2018 Tesla take-private saga.
Former Twitter shareholders in San Francisco allege Musk misled investors by claiming there were significantly more bots — fake or spam accounts — on the platform than Twitter had reported, as he attempted to renegotiate or back out of the acquisition. The lawsuit applies to investors who sold Twitter shares from May 13 to Oct. 4, 2022.
Plaintiffs’ attorney Mark Molumphy told jurors on Tuesday that Musk “trashed the company” and sent the stock plummeting. Musk’s counsel, Michael Lifrak, countered: “Two tweets and a podcast does not equal securities fraud.” Reuters
The Washington discussions haven’t clinched a deal. Should they fall apart, the SEC would pick up its case and keep pushing for cash and penalties, while a plaintiff victory in San Francisco might spark a different battle over damages.
Musk wrapped up his takeover of Twitter back in October 2022, then rebranded it as X. The SEC case may be close to finished, but with shareholders taking legal action, fallout from the deal keeps lingering.
