Judge approves $1.5 million SEC-Musk settlement over Twitter investment
A U.S. district judge has finalized a $1.5 million settlement between the SEC and Elon Musk over his delayed disclosure of Twitter investments, while sharply criticizing the agreement.
U.S. District Judge Sparkle Sooknanan has approved the settlement between the Securities and Exchange Commission (SEC) and Elon Musk, closing the legal dispute over Musk's 2022 investment in Twitter. The SEC had initially sued Musk, alleging that he delayed disclosing his existing stake in the social media platform by 11 days, allowing him to accumulate shares before completing the purchase and saving as much as $150 million at the expense of Twitter shareholders.
Following leadership changes at both the SEC and the White House, the agency reached a settlement earlier this year under which Musk paid a $1.5 million civil penalty without admitting wrongdoing. Many observers considered the amount insufficient, given Musk's enormous wealth.
In her memorandum and order, Judge Sooknanan acknowledged that the court's role is limited to evaluating whether the proposed consent judgment meets minimum standards of fairness and reasonableness. While she expressed "significant misgivings" about the settlement, she concluded that it did not meet the threshold of making "a mockery of judicial power," and therefore had to be accepted. She added that whether the SEC has done enough to hold Musk accountable is "for our citizenry to decide at the ballot box."
