Judge Approves $1.5M SEC-Musk Deal Despite Court's Own Doubts

A federal judge signed off on the settlement Wednesday, saying her reservations did not clear the legal bar required to block an agreement between two consenting parties.

A federal judge approved the SEC's $1.5 million settlement with Elon Musk on Wednesday.
The judge stated the agreement did not meet the 'high threshold' required for the court to reject it.
Despite approving the deal, the judge recorded 'significant misgivings' about the settlement's terms.
The case stemmed from Musk's late disclosure of his Twitter stake, which the SEC alleged cost other investors money.
The settlement closes out one of the agency's most high-profile enforcement actions against a sitting tech billionaire.

A federal judge approved the SEC’s $1.5 million settlement with Elon Musk on Wednesday, signing off on the agreement while noting she held “significant misgivings” about its terms.

The judge ruled that her reservations did not satisfy the “high threshold” required under law for a court to strike down a settlement reached between two willing parties.

The SEC had accused Musk of failing to disclose his acquisition of a stake in Twitter on time in 2022, a delay the agency alleged allowed him to purchase shares at artificially low prices at the expense of other investors.

The $1.5 million figure drew scrutiny given Musk’s net worth, with critics arguing the penalty amounted to a negligible cost for one of the world’s wealthiest individuals.

The settlement closes the SEC’s civil enforcement action against Musk on the Twitter disclosure matter. No criminal charges were filed.

The court’s written order is expected to be entered into the public docket in the coming days.