Judge Approves Elon Musk’s $1.5 Million SEC Settlement Despite Expressing Concerns

A U.S. judge has approved Elon Musk’s $1.5 million settlement with the U.S. Securities and Exchange Commission (SEC), although the court said it had “significant misgivings” about the agreement.

According to a Bloomberg report, U.S. District Judge Sparkle Sooknanan approved the settlement, bringing an end to the SEC’s lawsuit against Musk.

The SEC filed the lawsuit in early 2025 over Musk’s handling of his 2022 acquisition of Twitter. The regulator alleged that Musk failed to disclose his growing ownership stake in the social media company within the required timeframe, only days before Donald Trump returned to office.

According to the SEC, Musk’s delayed disclosure allowed him to purchase additional shares at lower prices, ultimately saving an estimated $150 million.

In May, Musk reached a settlement with the SEC under which a trust established in his name agreed to pay a $1.5 million civil penalty. As part of the agreement, Musk did not admit to any wrongdoing.

Judge Sooknanan had previously questioned whether Musk may have received “special treatment” from the Trump administration, noting that Musk had financially supported Trump’s 2024 presidential campaign.

In her written opinion, the judge stated that the court’s role was limited to determining whether the proposed settlement satisfied the minimum standards of fairness and reasonableness and whether it would undermine the integrity of the judicial process.

Although she acknowledged having “significant misgivings” about the agreement, Sooknanan concluded that the settlement did not reach the level that would justify rejecting it, allowing the case to be formally resolved.