A judge upheld a $1.5 million fine to settle a lawsuit filed by the US Securities and Exchange Commission against Elon Musk despite “substantial doubts.”
US District Judge Sparkle Sooknanan indicated that his court would accept the settlement. Bloomberg reported on this Wednesday referring to it judicial opinion.
Sooknana’s confirmation settles a lawsuit filed by the SEC against Musk in early 2025 over the billionaire’s takeover of Twitter. The lawsuit, filed just days before Donald Trump’s inauguration, centered around Musk’s failure to disclose to public investors in time his increased stake in the company in 2022.
Musk’s failure to initially disclose his stake “ultimately saved him $150 million,” the SEC said.
Musk in May settled Musk will be responsible for paying a $1.5 million fine without admitting wrongdoing to the SEC, which has led to reliance on Musk’s name.
i am here was questioned before Musk receiving “special treatment” from the Trump administration. Musk helped finance Trump’s campaign during the 2024 presidential election.
In his opinion, Sooknanan noted that his court was limited to evaluating “whether the proposed consent decree meets minimum standards of fairness and reasonableness” or “would make a mockery of judicial authority.”
“Although the court has serious doubts about the agreement reached in this case, it cannot say so
the settlement meets that high limit,” Sooknanan wrote.
