Elon Musk’s settlement with the Securities and Exchange Commission raises “red flags”, a federal judge said on Wednesday, as she refused to immediately sign off a $1.5mn deal with the regulator for the billionaire to end a lawsuit over Twitter stock disclosures.
US district judge Sparkle Sooknanan said she would not “rubber stamp” the settlement and that aspects of the deal “raise red flags for me”, according to Bloomberg and other news reports. The settlement was agreed by the White House and Musk’s trust earlier this month.
“Is Mr Musk getting some kind of special treatment in this case?” she asked.
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