US Judge Rejects SEC’s Request To Sanction Elon Musk

A federal judge has rejected the SEC’s request to sanction Elon Musk for missing court-ordered testimony in its probe into his USD 44 billion acquisition of Twitter.

Judge Jacqueline Scott Corley ruled that sanctions were unnecessary since Musk testified on October 3 and agreed to pay the SEC’s travel costs of USD 2,923. The SEC had argued that only covering costs would not deter others from ignoring court orders. The regulator is investigating whether Musk delayed disclosing his Twitter stock purchases in 2022, potentially violating securities laws. Musk claims he misunderstood the disclosure rules, and the SEC has not yet announced further action in the case.