A U.S. federal judge has declined to immediately approve the settlement reached between Elon Musk and the Securities and Exchange Commission (SEC) over Musk’s purchase of Twitter.
Instead, US District Judge Sparkle Sooknanan is opting to review the settlement arrangements to ensure that the two parties reached a fair agreement. Per the memo, the Judge wanted to determine whether the arrangement is consistent with the public interest and whether there are concerns about improper collusion or corruption.
The SEC and Elon Musk’s legal team were ordered to appear in Sooknanan’s Washington, DC courtroom next week, on May 13. The Judge also noted that both sides should be prepared to provide a proposed timeline for filing independent briefs in support of the settlement.
The settlement in question required Elon Musk to pay a $1.5 million fine for violating securities law. However, the fine is the only punishment, as he does not have to admit wrongdoing or forfeit the money he allegedly saved by waiting 11 days to disclose the purchase of his 9.2% stake in the company. According to Reuters, the total savings were around $150 million.
Neither the SEC nor Elon Musk’s team has provided a comment to the media on the ongoing settlement or the Judge’s decision to review the settlement agreement.
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