Judge approves Musk-SEC settlement despite concerns

A federal judge approved a settlement between Elon Musk and the Securities and Exchange Commission on Wednesday, July 8, despite expressing significant concerns about the agreement's terms and fairness. U.S. District Judge Sparkle Sooknanan in Washington, D.C., signed the consent judgment, which resolves allegations that Musk violated disclosure laws by delaying the reporting of his early purchases of Twitter shares in March and April 2022.

The SEC sued Musk in January 2025, alleging he took 11 days too long to disclose his accumulating Twitter stock, a delay the agency said saved him approximately $150 million by allowing him to buy shares at lower prices before other investors were aware of his intentions. Musk ultimately purchased Twitter for $44 billion in October 2022 and renamed it X. Under the settlement announced on May 4, a $1.5 million penalty and an injunction are imposed on the Elon Musk Revocable Trust, an investment vehicle Musk uses to manage much of his wealth. The SEC agreed to drop its claim against Musk personally, allowing him to avoid a judgment against him.

In her decision, Judge Sooknanan questioned several aspects of the settlement. She noted the amended...