❌

Normal view

Judge doesn't like Elon Musk settlement with SEC, but says court can't block it

9 July 2026 at 19:10

A federal judge reluctantly approved a $1.5 million settlement between Elon Musk and the Trump administration despite raising numerous concerns about a deal that lets Musk get off lightly for a rule violation that allegedly harmed Twitter investors.

In an order approving the deal, US District Judge Sparkle Sooknanan said she "has significant misgivings about the settlement" between Musk and the Securities and Exchange Commission (SEC), and described "red flags" in the SEC's decision-making. This isn't surprising given that she previously questioned whether the deal is tainted by corruption. But there is a high legal bar for rejecting the settlement, and the circumstances do not meet "that high threshold," she wrote yesterday.

"That means that this Court must accept the Parties’ consent judgment," Sooknanan, a Biden appointee, wrote. "Whether the Executive Branch (through the SEC) has done enough to hold Mr. Musk to account for his alleged violation is, like many other issues, for our citizenry to decide at the ballot box."

Read full article

Comments

Β© Getty Images | Dimitrios Kambouris

OpenAI may have made a fatal misstep in copyright fight with news orgs

OpenAI is facing calls for "serious sanctions" after fighting to keep news organizations from snooping through millions of logs to find evidence of users skirting their paywalls by prompting ChatGPT to regurgitate their articles.

This evidence is considered among the most important to both sides, potentially either dooming OpenAI as an infringer or exonerating its chatbot technology as a transformative fair use of news sites' content.

In a sanctions motion Thursday, news organizations suing OpenAIβ€”led by The New York Timesβ€”accused the AI firm of repeatedly lying for years to conceal evidence of infringement that could hobble OpenAI's defense.

Read full article

Comments

Β© Alona Horkova | iStock / Getty Images Plus

❌