The opinion says that if it’s fair, “it’s up to our citizens to decide at the ballot box.”
In 2022, the United States Securities and Exchange Commission, led by former Chairman Gary Gensler, filed suit against Elon Musk over his acquisition of Twitter. The regulator questioned Musk’s 11-day delay in revealing his previous investments in the social media platform, arguing that the wait allowed the entrepreneur to increase the size of his stake before making the purchase, saving him up to $150 million at the expense of the platform’s shareholders.
Following a change in leadership at the SEC and the White House, the agency reached an agreement earlier this year that saw Musk pay a $1.5 million civil penalty while admitting he had no wrongdoing. The fact that Musk, already incredibly wealthy, was essentially paying pocket change seemed insufficient to many. But today, Reuters reported that the extended drama is officially ending. U.S. District Judge Sparkle Sooknanan issued a memorandum and order to finalize the settlement. Although Sooknanan approved of the outcome, the order was accompanied by an unsubtle criticism of the way the case had been handled:
“This Court limits itself to assessing whether the proposed consent decree meets minimum standards of fairness and reasonableness, or whether it “instead constitutes a travesty of judicial power.” Although the Court has serious reservations about the settlement reached in this case, it cannot say that the settlement meets this high threshold. This means that this Court must accept the judgment by consent of the parties. It is up to our citizens to decide at the ballot box that the Executive Branch (through the SEC) has done enough to hold Mr. Musk accountable for his alleged violations. »
Ouch. Also, accurate.
