A federal judge approved a settlement allowing Musk to deny wrongdoing while paying just 1% of the disputed $150 million in closing costs.
A U.S. District Judge approved a settlement between the SEC and Elon Musk over allegations he deceived lenders to save $150 million in closing costs during his 2022 Twitter acquisition. The agreement permits Musk to deny wrongdoing while imposing a penalty equal to just 1% of the disputed amount, prompting judicial skepticism.
The SEC had accused Musk of misleading conduct during the $44 billion deal, which was finalized amid legal and financial scrutiny. Prior settlements involving high-profile executives often include admissions of fault or larger financial penalties, though Musk has previously avoided such outcomes in regulatory disputes.
The judge’s concerns were noted in the ruling, though no immediate market reaction was reported. The case adds to ongoing legal challenges Musk faces across multiple fronts, including Tesla and xAI-related litigation.