US judge questions S.E.C.'s $1.5 million Musk settlement and 99% cut
Business
A US judge is questioning the S.E.C.'s $1.5 million settlement with Elon Musk, which came after he was late in reporting his Twitter stock purchases back in 2022.
The deal quietly drops Musk as a defendant and replaces him with a legal trust named for him, cutting the S.E.C.'s original demands by 99%.
Judge Sparkle Sooknanan seeks fairness assurance
Judge Sparkle Sooknanan thinks the settlement might be designed to protect Musk personally and flagged how S.E.C. lawyers seemed caught off guard when Musk's team mentioned ongoing talks.
With such a massive reduction in penalties and unclear motives, she says it's her job to make sure the deal is fair and actually serves public interest before giving it a green light.