Federal Judge Approves Musk SEC Settlement While Flagging Penalty as Inadequate

US District Judge Sparkle Sooknanan approved a $1.5 million SEC settlement with Elon Musk over delayed Twitter stake disclosure on July 8, 2026, but declared she held "significant misgivings" about the penalty's adequacy against his alleged $150 million gain. Musk admitted no wrongdoing. The judge's public skepticism—unusually blunt for consent decree approval—suggests the settlement met minimum legal standards despite appearing disproportionate.