Attorneys for Elon Musk and the U.S.
Securities and Exchange Commission appeared before a federal judge in Washington, D.C., on Wednesday to argue in support of their $1.5 million settlement over Musk’s purchase of Twitter stock
Before she will approve the deal, Judge Sooknanan has said she intends to evaluate the settlement on multiple grounds — among them whether both parties are treated fairly, whether ordinary investors’ interests are served, and whether any improper collusion or corruption played a role in reaching the agreement. Wednesday’s hearing was also called so that each side could put forward a proposed schedule for submitting written arguments backing the deal. The lawsuit, filed by the SEC on Jan. 14, 2025 — six days before President Donald Trump took office — accused Musk of waiting too long to disclose that he had acquired more than a 5% stake in Twitter in April 2022.
The delay allowed him to buy additional shares at lower prices, saving him $150 million while other investors lost out. Musk has said the late disclosure was inadvertent and that the lawsuit was politically motivated. The $1.5 million penalty — the largest in SEC history for this type of violation — represents about 1% of what the agency alleged Musk improperly saved.