A federal judge in Washington, D.C. refused to rubber-stamp the SEC's $1.5 million settlement with Elon Musk on Friday, saying she needs to determine whether the deal is fair to the public and whether it is — her words — "tainted by improper collusion or corruption."
Here's the receipt: Musk allegedly waited 11 days past the legal deadline to disclose he had crossed a 5% ownership stake in Twitter, buying shares at depressed prices and pocketing roughly $150 million before markets could react. The proposed settlement lets him keep every dollar of that and admit zero wrongdoing. The SEC filed the lawsuit on January 14, 2025 — six days before Biden left office. By March 17, with new SEC enforcement chief Margaret Ryan freshly gone, both sides announced a settlement.
A $1.5 million clawback on a $150 million gain isn't accountability — it's a cover charge. Judge Sparkle Sooknanan ordered both sides back to court May 13. The boardroom is watching to see if this one slips through.