Judge approves SEC $1.5 million settlement with Musk over Twitter stake

Investing.com -- A federal judge approved the Securities and Exchange Commission's $1.5 million settlement with Elon Musk on Wednesday regarding his purchase of Twitter shares, though the judge expressed concerns about the agreement.

U.S. District Judge Sparkle Sooknanan in Washington, D.C. said she had "significant misgivings" about the accord but noted her role in evaluating whether the settlement met basic fairness and reasonableness standards was limited. She added that the public should decide through voting whether the SEC adequately held Musk accountable.

The settlement ends an SEC lawsuit that accused Musk of delaying his disclosure in April 2022 after acquiring a 5% stake in Twitter. The agency claimed the delay allowed him to save $150 million. Musk, the world's richest person, purchased Twitter for $44 billion six months after the stake disclosure.

Judge Sooknanan earlier had said that she needed to review several factors before approving the settlement, including fairness to both parties, consistency with public interest, and whether improper collusion or corruption influenced the agreement. She had directed both parties to appear in court on Wednesday and prepare a timeline for filing briefs supporting the settlement.

The SEC filed the lawsuit against Musk on January 14, 2025, six days before Democratic President Joe Biden departed the White House.

Musk previously served as an adviser to Republican President Donald Trump and has stated the lawsuit was politically motivated. He also said the delayed disclosure was unintentional.

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