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.
28 Articles
28 Articles
'Is This a One-Time Deal for Musk?': Judge Slams SEC for Letting Elon Keep $150M in Twitter Profits"
A US federal judge in Washington approved a settlement on Wednesday that will see Elon Musk pay $1.5 million (£1.12 million) to the Securities and Exchange Commission for failing to promptly disclose his 2022 Twitter share purchases, but warned in blunt terms that the deal lets him keep about $150 million (£111 million) in alleged illicit profits and may be a 'one-time deal for Musk.' The SEC sued Musk in January last year over his rapid accumul…
Elon Musk only has to pay a fraction of the penalty demanded in the Twitter deal – and the money doesn't even go to the affected investors. What's behind the questionable comparison.
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.
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