Judge probes whether Musk settlement with Trump admin is tainted by corruption
Trump admin wants to let Musk pay $1.5M fine to settle $150 million Twitter suit.
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A federal judge reportedly said she will not rubber-stamp a settlement between Elon Musk and the Securities and Exchange Commission, saying the deal raises red flags and needs scrutiny over whether Musk is getting special treatment from the Trump administration. As we reported last week, the Trump administration agreed to let Musk pay a $1.5 million fine to settle a lawsuit that originally sought at least $150 million. In 2022, before buying Twitter outright, Musk purchased a 9 percent stake in the social network and failed to disclose it within 10 days as required under US law. The SEC lawsuit filed during the Biden administration said the late disclosure allowed Musk to keep buying shares at artificially low prices and underpay shareholders by at least $150 million. Under the settlement with the SEC, a trust in Musk’s name would pay a $1.5 million civil penalty to the government and not admit that Musk committed any violation. The deal requires court approval, and Judge Sparkle Sooknanan expressed skepticism at a hearing yesterday in US District Court for the District of Columbia. Read full article Comments
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