Judge approves SEC settlement over Musk's delayed Twitter stock disclosures

Judge approves SEC settlement over Musk's delayed Twitter stock disclosures

A US District Judge has approved the Securities and Exchange Commission (SEC)'s settlement with Elon Musk over his delayed disclosure of Twitter share purchases.

The ruling comes after a trust associated with Musk agreed to pay a $1.5 million civil penalty to resolve SEC claims of violating federal securities laws during his acquisition of Twitter shares in 2022.

However, Judge Sparkle Sooknanan expressed "significant misgivings" about the deal, raising concerns about potential preferential treatment for the billionaire.

Case stems from Musk's purchase of Twitter shares

The settlement ends the SEC's lawsuit against Musk, but Sooknanan was reluctant to approve it.

She emphasized that federal courts cannot rewrite settlements just because they seem unsatisfactory.

The case stems from Musk's purchase of Twitter shares in early 2022, months before he acquired the social media company.

The SEC alleged Musk delayed disclosing his ownership had crossed the 5% threshold by 11 days beyond regulatory deadline, enabling him to buy shares at lower prices and save about $150 million.

Musk maintains late filing was an inadvertent mistake

Musk has maintained that the late filing was an inadvertent mistake rather than an intentional attempt to evade disclosure rules.

The lawsuit was filed in January 2025, just days before Donald Trump returned to the White House.

In May, both sides agreed to settle the case without Musk admitting or denying the allegations.

Under the agreement, a trust that manages much of Musk's wealth, not Musk personally, will pay a $1.5 million penalty.