All posts tagged: misgivings

Elon Musk to pay SEC .5 million settlement, judge signs off despite ‘serious misgivings’

Elon Musk to pay SEC $1.5 million settlement, judge signs off despite ‘serious misgivings’

Published by skeptic

A U.S. federal judge has approved a settlement that will see Elon Musk pay $1.5 million to the U.S. Securities and Exchange Commission (SEC) for failing to disclose his 2022 Twitter stock purchases within the legally required period. Even so, she was not happy about it. The penalty is a mere fraction of the amount Musk gained from the alleged violation, which he is apparently free to keep. SEE ALSO: Elon Musk sued by SEC for late disclosure of Twitter stock purchase In her order filed in a Columbia District Court on Wednesday, Judge Sparkle Sooknanan expressed “significant misgivings” about the deal between Musk and the SEC. Under the agreement, Musk will pay $1.5 million to the SEC — literally one percent of the $150 million he allegedly saved due to his late disclosure.  Further, the penalty will technically be paid by a trust in Musk’s name rather than directly by the billionaire himself, a manoeuvre that the court noted appeared “for the sole purpose of Mr. Musk being able to say that no relief …

Despite ‘misgivings,’ judge approves Elon Musk’s .5M SEC settlement

Despite ‘misgivings,’ judge approves Elon Musk’s $1.5M SEC settlement

Published by skeptic

A judge has approved a $1.5 million penalty levied against Elon Musk that will settle a U.S. Securities and Exchange Commission lawsuit despite having “significant misgivings” about it. U.S. District Judge Sparkle Sooknanan noted that her court would accept the settlement, Bloomberg reported Wednesday, which cited her court opinion. Sooknanan’s approval settles a lawsuit filed by the SEC against Musk in early 2025 over how the billionaire handled his takeover of Twitter. The lawsuit, which was filed only days before Donald Trump took office, revolved around Musk’s failure to disclose to public investors, in a timely manner, his growing stake in the company in 2022. The fact that Musk did not initially disclose his stake “ultimately saved him a whopping $150 million,” the SEC argued. In May, Musk reached a settlement with the SEC that stipulated a trust in Musk’s name would be responsible for paying a $1.5 million penalty without admitting wrongdoing. Sooknanan previously questioned whether Musk was receiving “special treatment” from the Trump administration. Musk helped to bankroll Trump’s campaign during the 2024 presidential …