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Judge Rejects $1.5M Musk Settlement, Flags $150M Disclosure Gap

5/14/2026

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Summary

Story summary

Judge Sparkle Sooknanan refused to approve the $1.5 million settlement and set a June 1 deadline.
She said payment from Musk’s trust raises flags and noted Securities and Exchange Commission (SEC) said Musk failed to disclose 5 % Twitter stake 2022, costing $150 million.
She ordered the parties to explain why the SEC removed Musk as a defendant and why the deal cut the $150 million return demand from the $200 million request.

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Story summary

Judge Sparkle Sooknanan refused to approve the $1.5 million settlement and set a June 1 deadline.
She said payment from Musk’s trust raises flags and noted Securities and Exchange Commission (SEC) said Musk failed to disclose 5 % Twitter stake 2022, costing $150 million.
She ordered the parties to explain why the SEC removed Musk as a defendant and why the deal cut the $150 million return demand from the $200 million request.