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US judge approves Musk-SEC settlement over Twitter takeover disclosures
🇦🇹 Austria /Economy & Trade

US judge approves Musk-SEC settlement over Twitter takeover disclosures

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News From a news agency Outcome reported
  • A U.S. federal judge approved a settlement between Elon Musk and the SEC over delayed disclosures related to his Twitter takeover.
  • The judge expressed "significant concerns" about the agreement but found limited discretion in assessing its fairness.
  • Musk will pay a $1.5 million fine as part of the settlement, which resolves claims that he saved $150 million by not disclosing early stock purchases on time.

A U.S. federal judge has approved a settlement between the Securities and Exchange Commission (SEC) and investor Elon Musk concerning delayed disclosures during his acquisition of Twitter, now known as X.

District Judge Sparkle Sooknanan stated in Washington that she had "significant concerns" regarding the agreement. However, she noted her limited scope in evaluating whether the settlement met minimum standards of fairness and reasonableness. The judge suggested that the public should decide at the ballot box whether the SEC adequately held Musk accountable.

I have "significant concerns" regarding the agreement.

— District Judge Sparkle SooknananThe judge voiced her reservations about the settlement terms during the approval hearing.

Musk agreed to pay a $1.5 million civil penalty. The SEC had alleged that Musk saved $150 million by failing to disclose his early stock purchases in Twitter in a timely manner. Musk maintains that the delayed disclosure was unintentional. The settlement resolves these specific claims.

Separately, investors have accused Musk of misleading them about the prevalence of fake and spam accounts on Twitter before his purchase, allegedly causing them losses. X is now part of Musk's publicly traded aerospace company, SpaceX.

It is up to the public to decide at the ballot box whether the SEC has done enough to hold Musk accountable.

— District Judge Sparkle SooknananThe judge indicated that public and political accountability, rather than her judicial review, was the ultimate measure for the SEC's actions.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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