A federal judge has approved a settlement between the Securities and Exchange Commission and Elon Musk despite expressing serious reservations about the agreement.
According to the report, U.S. District Judge Sparkle Sooknanan allowed the settlement to proceed, shifting a $1.5 million civil penalty to the Elon Musk Revocable Trust instead of imposing a personal judgment against Musk.
According to the report, Judge Sooknanan questioned whether the settlement adequately reflected the seriousness of the allegations, noting the penalty represented only a small fraction of the amount involved.
Although she expressed "significant misgivings" and questioned whether the agreement could undermine public confidence in the judicial process, she concluded that the proposed settlement met the minimum legal standards of fairness and reasonableness.
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Judge approves Elon Musk settlement with US SEC over Twitter disclosures https://t.co/BuW0EULs6a https://t.co/BuW0EULs6a
— Reuters (@Reuters) July 8, 2026
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