US Judge Allows SEC-Musk Deal Despite ‘Significant Misgivings’
The deal ends the SEC case over Musk’s 2022 Twitter stake, and the judge said the $1.5 million penalty is about 1% of the money at issue.
- On Wednesday, District Judge Sparkle Sooknanan reluctantly approved a settlement allowing Elon Musk to avoid personal judgment in an SEC case, shifting the $1.5 million penalty to the Elon Musk Revocable Trust.
- The SEC sued Musk in 2025 regarding his 2022 Twitter stock acquisition, alleging his failure to disclose the stake "ultimately saved him a whopping $150 million" at other investors' expense.
- Sooknanan expressed "significant misgivings" about the deal, noting the penalty is roughly 1% of the money at stake and that the amended complaint was filed three minutes before the settlement motion.
- While questioning if the deal might "make a mockery of judicial power," Sooknanan wrote she was "limited to evaluating whether the proposed consent judgment meets minimum standards of fairness and reasonableness."
- Sooknanan previously questioned whether Musk received "special treatment" from the Trump administration, concluding that holding Musk to account for his alleged violation is "for our citizenry to decide at the ballot box.
18 Articles
18 Articles
Judge approves Musk’s $1.5m SEC Twitter settlement despite ‘red flags’
A federal judge has approved the Securities and Exchange Commission’s settlement with Elon Musk over his late disclosure of a Twitter stake, closing a case that has run for years. US District Judge Sparkle L. Sooknanan entered the consent judgment on Wednesday in Washington, DC, despite what she described as significant misgivings about the deal. […] This story continues at The Next Web
It reached a settlement with the US Securities and Exchange Commission. The court, although calling it a concern, approved the agreement.
Because of the price manipulations in the course of the acquisition of X, Elon Musk had agreed to a very favourable settlement with the SEC. A judge blessed him now – with a clear comment.
'Red flags' remain: US judge approves SEC settlement with Elon Musk, questions regulator's handling of case
A US judge approved the SEC's $1.5 million settlement with Elon Musk over his delayed disclosure of Twitter share purchases but criticised the regulator's handling of the case, raising concerns about whether the billionaire received preferential treatment
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