Judge says Elon Musk’s $1.5M settlement with SEC over Twitter disclosures raises ‘red flags’
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Published on May 13, 2026.
A federal judge in Washington, DC, has raised concerns about the Securities and Exchange Commission's $1.5 million settlement over Elon Musk's purchase of Twitter, suggesting it may have been inked to avoid penalizing him personally. The settlement, which also dropped demands for the return of $150 million in allegedly ill-gotten gains, was described as "irregularities" by the judge. The judge stated that she could not "rubber stamp" their agreement. This comes after the SEC accused Musk of delaying too long to disclose his shares in Twitter in 2022.
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