The US Securities and Exchange Commission (SEC) has defended its proposed settlement with Elon Musk over allegations that he delayed disclosing his purchase of Twitter shares in 2022, arguing that the agreement was reached through legitimate negotiations and was not tainted by collusion.
In a court filing, the SEC said the $1.5 million settlement was “fair, reasonable, and appropriate” and reflected compromises from both sides. The deal would resolve claims that Musk waited 11 days too long to disclose his stake in Twitter, allowing him to acquire shares at lower prices before the market became aware of his position.
The defense came after a federal judge questioned the agreement, including why the penalty would be paid by a trust linked to Musk rather than the billionaire himself. If approved, the settlement would allow Musk to publicly deny the SEC’s allegations under the regulator’s revised enforcement policy.