Despite ‘misgivings,’ judge approves Elon Musk’s $1.5 million SEC settlement
In Brief
4:11 PM PDT · July 8, 2026
A judge has approved a $1.5 million penalty levied against Elon Musk that will settle a U.S. Securities and Exchange Commission lawsuit despite having “significant misgivings” about it.
U.S. District Judge Sparkle Sooknanan noted that her court would accept the settlement, Bloomberg reported Wednesday, which cited her court opinion.
Sooknanan’s approval settles a lawsuit filed by the SEC against Musk in early 2025 over how the billionaire handled his takeover of the social network platform formerly known as Twitter. The lawsuit, which was filed only days before Donald Trump took office, revolved around Musk’s failure to disclose to public investors, in a timely manner, his growing stake in the company in 2022.
The fact that Musk did not initially disclose his stake “ultimately saved him a whopping $150 million,” the SEC argued.
In May, Musk reached a settlementwith the...
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