- A federal judge has reluctantly approved a $1.5 million settlement in a lawsuit accusing Elon Musk of failing to promptly disclose his growing stake in Twitter in 2022.
- U.S. District Judge Sparkle Sooknanan said she had "significant misgivings" about the deal, noting that Musk's alleged delay in reporting his purchases allowed him to save more than $150 million.
- The judge also questioned why the Securities and Exchange Commission settled with a Musk-related trust rather than Musk himself, saying the arrangement allowed him to avoid direct penalties.
- The SEC had originally sought about $200 million but agreed to the $1.5 million settlement, arguing it reflected an appropriate compromise by all parties.
- Musk's attorney said the settlement resolves the matter and that Musk has been cleared of any claims related to the late filing, with the trust agreeing to pay the civil penalty.
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