Elon Musk has settled the SEC’s lawsuit over the timing of his 2022 disclosures about his initial Twitter stake, resolving one of the agency’s most closely watched beneficial-ownership reporting cases. Under the reported deal, a trust will pay a $1.5 million civil penalty, bringing to a close a dispute that tested how aggressively the SEC would pursue delayed Schedule 13D-style disclosures in a headline-making transaction.

The case centered on allegations that Musk did not timely disclose that he had crossed the 5% ownership threshold in Twitter stock, a milestone that can trigger federal reporting obligations for investors acquiring significant positions in public companies.