Federal Judge Cites 'Red Flags' in Musk, SEC Twitter Settlement
The deal would end an SEC lawsuit over Musk’s delayed Twitter stake disclosure without requiring him to admit wrongdoing.
- On Wednesday, U.S. District Judge Sparkle Sooknanan questioned the proposed $1.5 million settlement between Elon Musk and the Securities and Exchange Commission, stating she could not "rubber stamp" the deal due to "irregularities."
- Citing "red flags," Sooknanan criticized the agreement, which replaces Musk as a defendant with a trust bearing his name and dropped demands for $150 million in allegedly ill-gotten gains.
- The original lawsuit alleged Musk waited too long in 2022 to disclose he had amassed more than 5% of Twitter Inc. stock, a delay the regulator claimed cost shareholders more than $150 million.
- Although the $1.5 million fine is the largest in SEC history for this violation, it remains a fraction of the $200 million the agency initially sought earlier this month.
- Sooknanan ordered attorneys to explain by June 1 how the parties reached the deal, noting she must consider whether the settlement is "tainted by improper collusion or corruption.
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Elon Musk's fund company was to pay only $1.5 million in penalty for possible trickery at Twitter takeover in 2022. However, a judge sees »irregularities« and does not want to approve the deal.
SCIENCE & TECH: Judge says Elon Musk’s $1.5M settlement with SEC over Twitter disclosures raises ‘red flags’
A federal judge on Wednesday cast doubt on the motives behind the Securities and Exchange Commission’s $1.5 million settlement over Elon Musk’s purchase of Twitter, suggesting the deal may have been inked with the sole purpose of avoiding penalizing him personally. US District Judge Sparkle Sooknanan in Washington, DC, last week had summoned attorneys for both sides to appear before her to discuss the settlement, which the judge said had a strin…
Times of India
The Economic TimesUS SEC, Elon Musk to argue for Twitter settlement before DC judge
Attorneys for the SEC and Elon Musk will argue for a $1.5 million settlement over Musk's delayed disclosure of a 5% stake in Twitter. The settlement resolves an SEC lawsuit alleging Musk saved $150 million by not reporting his stake in April 2022.
Judge says Elon Musk’s $1.5M settlement with SEC over Twitter disclosures raises ‘red flags’
A federal judge on Wednesday cast doubt on the motives behind the Securities and Exchange Commission's $1.5 million settlement over Elon Musk's purchase of Twitter, suggesting the deal may have been inked with the sole purpose of avoiding penalizing him personally.
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