A federal judge has raised concerns over a proposed settlement between Elon Musk and the U.S. Securities and Exchange Commission (SEC), signaling that she will not automatically approve the deal. Judge Sparkle Sooknanan expressed skepticism during a hearing yesterday in the U.S. District Court for the District of Columbia, questioning whether Musk is receiving special treatment from the Trump administration.
The settlement stems from a 2022 incident in which Musk purchased a 9% stake in Twitter without disclosing it within the required 10-day window under U.S. securities laws. The SEC, under the Biden administration, filed a lawsuit alleging that the late disclosure allowed Musk to continue acquiring shares at undervalued prices, costing shareholders at least $150 million.
Under the proposed agreement, a trust in Musk’s name would pay a $1.5 million civil penalty to the government. Notably, Musk would not admit to any violations as part of the settlement. The deal requires court approval to take effect.
The judge’s scrutiny highlights broader concerns about the fairness and transparency of the settlement process, particularly in cases involving high-profile figures and potential political influence.
Related articles
Musk vs. Altman Trial: Closing Arguments Reveal Legal Missteps and Evidence Mount
Today was closing arguments in the Musk v. Altman trial, and I almost feel bad writing about the unbelievable demolition derby I just witnessed. Steve...
Fired IT Workers Accidentally Record Own Database Sabotage via Active Teams Call
Perhaps you remember Muneeb and Sohaib Akhter, the 34-year-old twin brothers we profiled earlier this week. Although they had the tech chops to commit...
Elon Musk’s 'Jackass' Trophy Takes Center Stage in OpenAI Trial
Yesterday, in Musk v. Altman, before the jurors came in, Sam Altman's team passed up what looked - from a distance - like a little league trophy. It w...
How Digital Footprints Led to a Life Sentence in a Utah Fentanyl Murder Case
"What kind of doctor was dr. pepper," Utah real estate agent Kouri Richins once asked a search engine. (Sadly, there was no actual Dr. Pepper.) But it...
70% of Americans Oppose AI Data Centers Near Homes, Gallup Finds
Over 70 percent of Americans oppose AI data center construction in their area, according to a new Gallup survey. Just seven percent said they were "st...
Major US Carriers AT&T, T-Mobile, and Verizon Collaborate to End Mobile Coverage Dead Zones
The rival carriers will pool resources to improve satellite capacity and boost connectivity in underserved areas.
How Corporations Use Forced Arbitration to Block Consumer Justice
Today, I’m talking with Brendan Ballou, founder of the Public Integrity Project and author of a new book, called When Companies Run the Courts, about...
Major US Carriers AT&T, T-Mobile, and Verizon Launch Joint Venture to Eliminate Wireless Dead Zones
AT&T, T-Mobile, and Verizon have agreed to work together under a new joint venture that aims to end wireless dead zones in the US. The partnership was...