A federal judge has postponed the approval of a $1.5 million settlement between Elon Musk and the U.S. Securities and Exchange Commission (SEC) concerning Musk’s delay in disclosing his Twitter stock purchase in 2022. The judge emphasized the need to examine whether the settlement is fair, serves the public interest, and lacks any indication of improper conduct.
The lawsuit centers on accusations that Musk, CEO of Tesla and SpaceX, failed to promptly disclose his acquisition of over 5% of Twitter shares. The SEC alleges that Musk waited 11 days beyond the required reporting period, during which he allegedly bought more shares at lower prices, saving approximately $150 million before announcing a 9.2% stake in April 2022. This delay drew regulatory scrutiny amid Musk’s subsequent $44 billion takeover of Twitter, later rebranded as X.
The SEC originally filed the suit in January 2025, targeting Musk’s reporting lapse. Under the proposed settlement, Musk would resolve the dispute without admitting any wrongdoing or returning profits linked to the delayed disclosure. Musk has denied any intentional misconduct, claiming the delay was accidental and politically motivated. Both parties must return to court on May 13 to outline a schedule for submitting additional briefs supporting the deal, signaling ongoing judicial review before final resolution.