A federal judge approves a $1.5 million settlement between the U.S. Securities and Exchange Commission and Elon Musk, ending a long-running dispute tied to Musk’s late disclosure of a growing stake in Twitter (now X). Multiple outlets report that U.S. District Judge Sparkle L. Sooknanan signs the consent judgment in Washington, D.C., despite expressing “significant misgivings” about the settlement. According to coverage, the judge acknowledges that the agreement is not a typical deal and notes “red flags,” but still concludes it does not meet the “high threshold” required to reject the agreement.
The SEC’s case stems from allegations that Musk missed a required deadline in 2022 to disclose that he had acquired more than a 5% ownership stake in Twitter, a disclosure matter that the SEC framed as harming investors. Outlets also note the settlement is announced by the SEC in May and that the court’s approval resolves the dispute. The judge’s decision allows the settlement to proceed, with Musk paying the SEC $1.5 million.
