A federal judge approved Elon Musk’s $1.5 million settlement with regulators over delayed disclosure of his Twitter stake, despite judicial concerns.
A U.S. federal judge approved Elon Musk’s $1.5 million settlement with the SEC over his delayed disclosure of a Twitter stake, resolving a lawsuit alleging violations of ownership reporting rules. The penalty will be paid by a trust linked to Musk, who admitted no wrongdoing under the agreement.
The SEC alleged Musk waited 11 days past the legal deadline to disclose acquiring over 5% of Twitter in 2022, allowing him to accumulate shares before prices adjusted. The agency estimated the delay cost other shareholders at least $150 million. Judge Sparkle Sooknanan signed the deal but expressed reservations about the SEC’s enforcement.
The ruling ends litigation filed in January 2025, though the judge noted broader accountability questions remain outside judicial purview.