D.C. judge pauses Musk $1.5 million SEC settlement pending fairness review
Business
A judge in Washington, D.C., just hit pause on Elon Musk's $1.5 million settlement with the SEC, saying there isn't enough information yet to call it fair.
The SEC claims Musk waited 11 days too long to reveal his 5% Twitter stake, a move they say let him save $150 million before he finally disclosed owning over 9% in April 2022.
Judge Sooknanan schedules May 13 hearing
Judge Sparkle Sooknanan wants Musk and the SEC back in court on May 13 with clear timelines and more details, making sure the deal is actually in the public interest.
Musk says the lawsuit is politically motivated and insists his late filing was accidental.
The settlement doesn't make him admit wrongdoing or pay money back, and it resolves an SEC lawsuit over Musk's delayed disclosure of his Twitter stake.