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

Ahead of a July 2 deadline to submit public comments, advocates are warning the Federal Trade Commission that it must keep close watch over Elon Musk’s X and firmly reject a recent bid to end the agency’s ongoing audits of the platform’s data handling.

Last month, the FTC posted a notice explaining that X had argued that an FTC order was no longer necessary due to changes Musk had made to the platform.

The initial order came as a penalty after the FTC found that a coding error had caused then-Twitter to improperly share users’ contact information for ad targeting that had initially been submitted for two-factor authentication. Under the order, X is subjected to costly independent audits, and the FTC has authority to demand documents to ensure compliance with data privacy laws without taking additional legal action.

Read full article

Comments