This isn't really about a fine. Musk is being sued by other another company. They claim that Musk saved $200m on his Twitter purchase by failing to disclose in time. In other words he bought some shares that would have cost him more if he had disclosed.
Of course his savings was someone else's loss of potential profit, and they are suing Musk to get that profit back.
What a weird take. Nobody is punishing people who smoke.