Judge OKs Musk's $1.5 million settlement with SEC with 'red flags' - UPI.com

SpaceX and xAI CEO Elon Musk speaks during a panel discussion during the World Economic Forum in Davos, Switzerland, in January. The trillionaire just settled with the SEC for $1.5 million for his purchase of Twitter. File Photo by Gian Ehrenzeller/EPA

July 9 (UPI) -- A federal judge approved a $1.5 million settlement with the Securities and Exchange Commission for tech mogul Elon Musk over his alleged failure to report holdings on time, though she reported having "significant misgivings."

The SEC sued the trillionaire in January 2025 alleging he failed to disclose when his stock in Twitter went over 5% in 2022. He didn't report it until it reached 9%, costing Twitter's shareholders as much as $150 million when he eventually bought the social media company now known as X.

The two reached the settlement in May.

"This Court is limited to evaluating whether the proposed consent judgment meets minimum standards of fairness and reasonableness, or whether it instead 'make[s] a mockery of judicial power,'" U.S. District Judge Sparkle Sooknanan said in her decision.