Judge won't rubber-stamp Elon Musk's $1.5M settlement with SEC over Twitter disclosures
New York Post • • business
Key Points:
- A federal judge declined to quickly approve the SEC’s $1.5 million settlement with Elon Musk over delayed disclosure of his Twitter stake, seeking more information on the fairness and process of the agreement.
- The SEC lawsuit accused Musk of waiting 11 days too long to disclose a 5% stake in Twitter, potentially saving $150 million by the time he revealed a 9.2% stake in April 2022, prior to his $44 billion purchase of the company.
- US District Judge Sparkle Sooknanan ordered both parties to appear in court on May 13 to discuss the settlement timeline and ensure the deal is free from improper collusion or corruption.
- Musk has denied wrongdoing and claimed the lawsuit was politically motivated, while the SEC’s enforcement focus has shifted under new leadership following changes in the Trump and Biden administrations.
- The settlement allows Musk to avoid admitting fault or relinquishing the money he allegedly saved, and Twitter, now renamed X, is integrated with Musk’s SpaceX operations.
