A federal judge is asking for more information about a proposed settlement between Elon Musk and the US Securities and Exchange Commission, after the billionaire agreed to pay $1.5 million to end a lawsuit alleging he waited too long to disclose his growing stake in Twitter.
Attorneys for Musk and the SEC are set to appear before US District Judge Sparkle Sooknanan on May 13, according to the order she issued May 8. Sooknanan will consider if “the settlement is fair, adequate, reasonable and appropriate” and “whether it was tainted by improper collusion or corruption.”
It is typical for judges to review these types of agreements before approving them.
The deal between Musk and the SEC was reached earlier this week. Musk didn’t admit or deny the regulator’s allegations, according to a filing on Monday.
Related: Musk Agrees to Pay $1.5 Million Over SEC Twitter Stake Case
The SEC sued Musk in January 2025, days before President Donald Trump took office, saying he waited too long in 2022 to disclose that he’d accumulated more than 5% of Twitter’s stock. That delay cost Twitter shareholders more than $150 million, the regulator said at the time.
Musk later bought the company in 2022 and renamed it X.
The case is Securities and Exchange Commission v. Musk, 25-cv-105, US District Court, District of Columbia (Washington).
Photo: Elon Musk during the World Economic Forum (WEF) in Davos. Photo credit: Krisztian Bocsi/Bloomberg
Topics Legislation
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