WASHINGTON, March 18, 2026, 11:25 EDT.
Elon Musk and the U.S. Securities and Exchange Commission are in talks to settle the government’s lawsuit over his delayed disclosure of Twitter share purchases in 2022, a court filing showed, opening a path to avoid further proceedings in Washington. The talks surfaced as a San Francisco jury started weighing a separate shareholder case over Musk’s comments about fake accounts during the $44 billion takeover fight. 1
The timing matters. The discussions come as SEC Chairman Paul Atkins refocuses parts of the agency’s enforcement agenda and give Musk a chance to close one of the last big regulatory cases tied to his stake-building in Twitter before the Washington case moves deeper into court. 1
They also broke into view just as the San Francisco case went to the jury, leaving Musk exposed on two fronts from the same 2022 deal. A settlement with the SEC would remove a claim for penalties and about $150 million the regulator says he saved, but the shareholder suit could still leave him facing damages. 1
In Tuesday’s filing, the SEC and Musk asked U.S. District Judge Sparkle Sooknanan to push the next scheduling deadline to April 1 from March 18 because settlement discussions were under way. The SEC declined to comment and Musk’s lawyers did not immediately respond, Reuters reported. 1
The Financial Times reported, citing court records, that Musk’s lawyers tried to pursue those talks with senior SEC officials without the agency’s trial team, and that Sooknanan expressed surprise at a March 4 hearing when she learned the SEC litigators were not part of the effort. Musk’s side denied White House involvement, the FT said. 2
The Washington case turns on a disclosure rule that requires investors to alert the market within 10 calendar days after crossing 5% ownership in a public company. The SEC says Musk waited 11 days in early 2022, letting him buy more than $500 million of Twitter shares before other investors knew he had crossed the threshold. 3
The regulator wants a civil fine and for Musk to give back about $150 million it says he saved. Musk says the delay was inadvertent, has accused the SEC of targeting him, and last month lost a bid to throw the case out; any deal now would cap another round in his long fight with the agency since the 2018 Tesla take-private case. 3
In San Francisco, former Twitter shareholders say Musk misled the market by publicly suggesting Twitter had far more bots — fake or spam accounts — than the company disclosed as he tried to renegotiate or walk away from the takeover. The suit covers investors who sold Twitter stock between May 13 and Oct. 4, 2022. 4
In closing arguments on Tuesday, plaintiffs’ lawyer Mark Molumphy said Musk “trashed the company” and tanked the stock. Musk lawyer Michael Lifrak replied that “Two tweets and a podcast does not equal securities fraud.” 4
But the Washington talks are not a settlement yet. If they collapse, the SEC case resumes with the agency still seeking money and penalties, and a plaintiff win in San Francisco could open a separate fight over damages. 1
Musk completed the Twitter takeover in October 2022 and later renamed the platform X. Even if he resolves the SEC case, the shareholder action means the legal aftershocks of the deal are not over. 4
