Last year, the SEC sued Elon Musk over the way his acquisition of Twitter (now X, and a part of SpaceX) started, and today it announced a settlement that looks like a massive bargain, while Musk’s own lawsuit against Sam Altman continues to play out. A week before the Trump administration took over, the department had alleged that by not disclosing he’d purchased more than $500 million in Twitter stock on time in the spring of 2022, Musk underpaid by at least $150 million, and harmed investors who sold their stock during that time.

Now, as reported by Reuters, the SEC has added the Elon Musk Revocable Trust to its lawsuit, which will settle the case by paying a $1.5 million civil penalty without admitting wrongdoing or requiring Musk to cough up any of the money he allegedly saved.

On May 4, 2026, the U.S. Securities and Exchange Commission filed an amended complaint to add the Elon Musk Revocable Trust dated July 22, 2003 (the “Revocable Trust”) as a defendant to this action. The amended complaint alleges that the defendants failed to timely file a beneficial ownership report with the Commission after the Revocable Trust acquired beneficial ownership of more than five percent of the outstanding shares of Twitter, Inc. common stock, in violation of the beneficial ownership reporting requirements under the Securities Exchange Act of 1934 (“Exchange Act”).

The SEC simultaneously moved for entry of a consent final judgment as to the Revocable Trust. Without admitting or denying the allegations of the complaint as to the Revocable Trust, the Revocable Trust consented to entry of a final judgment, subject to court approval, that would permanently enjoin it from violating Section 13(d) of the Exchange Act and Rule 13d-1 thereunder and order it to pay a civil penalty of $1.5 million.

As explained in the consent motion, if the court enters the proposed final judgment as to the Revocable Trust as proposed by the Revocable Trust and the SEC, the SEC will file a stipulated dismissal of Elon Musk in his personal capacity, which will resolve this case in its entirety.

The ultra-low-cost air carrier Spirit Airlines shut down operations after 34 years in business and canceled all flights at 3AM ET on Saturday morning. Its website now redirects to spiritrestructuring.com, instructing fliers not to go to airports, with air traffic control records capturing controllers and pilots signing off to each other as its last flights came in for landings after the shutdown was announced.

A statement on its website said that for people who purchased tickets directly, “Refunds for tickets purchased by credit card and debit card have been issued, and will be processed by Spirit’s credit card processor.” A lawyer for Spirit said the shutdown could impact 17,000 jobs, reports the Associated Press, as the Air Line Pilots Association said its more than 2,000 pilots, as well as flight attendants, mechanics, dispatchers, and ground crews, “deserved better than this outcome.

For stranded travelers, other airlines have announced various rescue fare options. That includes special fares on Southwest for Spirit ticketholders, while JetBlue has $99 one-way fares for travelers with Spirit itineraries on the same route, as well as Blue Basic fare caps for the next week on its nonstop routes to and from Fort Lauderdale and San Juan.

American Airlines announced rescue fares on Spirit routes where it offers nonstop service, and said it’s looking into adding capacity with bigger planes and more flights. United says that customers with Spirit tickets through May 16th can “buy capped fares for most one-way flights to Spirit destinations.” Frontier announced “systemwide rescue fare discounts,” and said it would add “nine additional routes, plus 15 additional daily flights across 18 former Spirit markets.”

Spirit:

The wind-down follows the Company’s extensive and comprehensive efforts to restructure the business and pursue transactions to strengthen Spirit’s financial position and create a sustainable path forward. Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook. With no additional funding available to the Company, Spirit had no choice but to begin this wind-down. 

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” said Dave Davis, Spirit’s President and Chief Executive Officer. “In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business. However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company. Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”

As we reported recently, Spirit was in the middle of its second bankruptcy filing in the last two years, and hadn’t turned a profit since 2019. JetBlue attempted a hostile takeover in 2022 that was eventually blocked by the courts, while merger proposals from Frontier also failed.

In late 2019, Spirit took on billions in debt to lease new airplanes and add new destinations, just before covid hit and suppressed the travel market. Spirit has also faced higher maintenance costs after a Pratt & Whitney PW1100G jet engine used in many of its planes was recalled for a dangerous manufacturing defect, grounding nearly 20 percent of its fleet overnight.

And that was all before the war in Iran caused a spike in fuel prices that it didn’t have enough cash on hand to afford, as its restructuring with lenders projected $2.24 a gallon prices that had climbed to more than $4.50 a gallon last month.

Reuters reports that talks with the White House about a “proposed $500 million in financing in exchange for warrants ​equivalent to 90% of Spirit’s equity” fell through, after Donald Trump said last month that his administration was interested in buying the carrier at the “right price,” similar to taking a 10 percent stake in Intel.