May 13, 2026, 6:56 p.m. ET A federal judge on Wednesday cast doubt on the motives behind the Securities and Exchange Commission’s $1.5 million settlement over Elon Musk’s purchase of Twitter, suggesting the deal may have been inked with the sole purpose of avoiding penalizing him personally. US District Judge Sparkle Sooknanan in Washington, DC, last week had summoned attorneys for both sides to appear before her to discuss the settlement, which the judge said had a string of “irregularities” that required in-depth explanation. She reiterated that she could not “rubber stamp” their agreement. Last year, the SEC accused Musk of waiting too long to disclose the buildup of his shares in Twitter in 2022. This month, the SEC removed Musk as a defendant and replaced him with a legal trust bearing his name. Last year, the SEC accused Elon Musk of waiting too long to disclose the buildup of his shares in Twitter in 2022. AP The settlement also dropped demands for the return of $150 million in allegedly ill-gotten gains, and reduced the total amount sought by 99%. The judge said these terms were “red flags.” “Given all the irregularities I have noted, I have concerns,” the judge said. Explore More