On April 2, according to Bloomberg, Elon Musk and the U.S. Securities and Exchange Commission (SEC) told a judge on Wednesday that the two sides will enter the trial stage in the SEC’s case accusing Musk of defrauding investors when acquiring Twitter in 2022.
Musk
The two sides filed a joint progress report in federal court in Washington on Wednesday.Just two weeks ago, lawyers for both sides said they were negotiating a "potential settlement." The SEC sued Musk in January 2025. Lawyers for both sides said in the latest filing that they and their clients have discussed alternative dispute resolution options.
“The parties believe that, at this time, neither the Court’s ADR proceedings nor any other form of ADR would be helpful in this case,” the document states.
Recently, Musk has suffered a series of setbacks in lawsuits related to his acquisition of Twitter. In March, a San Francisco jury ruled that Musk misled investors when he tweeted about the existence of too many fake accounts and attempted to renege on his $44 billion takeover bid. This week, a federal judge in Manhattan approved a class-action lawsuit filed by investors who claimed that Musk manipulated the company's stock price before the acquisition.
As of press time, the SEC declined to comment further. Musk's lawyers have not responded to requests for comment.