A federal judge has approved the Securities and Exchange Commission’s settlement with Elon Musk over his late disclosure of a Twitter stake, closing a case that has run for years.
US District Judge Sparkle L. Sooknanan entered the consent judgment on Wednesday in Washington, DC, despite what she described as significant misgivings about the deal.
The dispute traces back to Musk’s 2022 bid for Twitter, as he built a stake. The agreement, first announced in early May, orders a revocable trust in Musk’s name to pay a $1.5m civil penalty.
That is the largest sum the SEC has ever secured for a standalone violation of Section 13(d) of the Securities Exchange Act, the rule that governs beneficial-ownership disclosure.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The judgment also places the trust under a permanent injunction against future breaches, and in exchange the agency will drop all claims against Musk personally.
