\u201cThe SEC has decided not to press for relief that could compensate Mr. Musk\u2019s alleged victims, instead settling on a form of relief that would go into the government\u2019s pocket,\u201d Sooknanan wrote yesterday. The SEC told the court that it originally asked for disgorgement because it \u201chas the statutory authority\u201d to do so but dropped the request because it has not historically obtained disgorgement in this type of case, she wrote.<\/p>\n
Settlement meets \u201cminimum\u201d standards<\/p>\n
In May, Sooknanan told<\/a> the SEC and Musk lawyers, \u201cI am not going to rubber-stamp this settlement, and I cannot rubber-stamp this settlement.\u201d She told the sides to provide more information on how the deal was reached and asked whether Musk is \u201cgetting some kind of special treatment.\u201d She said in an order<\/a> that the court must consider whether the settlement \u201cresolves the claims in the complaint, and whether it was tainted by improper collusion or corruption.\u201d<\/p>\n Sooknanan said yesterday that the settlement met the \u201cminimum\u201d standards.<\/p>\n \u201cA court presented with a consent judgment is not a rubber stamp. But neither is it an ombudsman,\u201d she wrote. \u201cThis Court is limited to evaluating whether the proposed consent judgment meets minimum standards of fairness and reasonableness, or whether it instead \u2018make[s] a mockery of judicial power.\u2019\u201d<\/p>\n SEC and Musk lawyers told the court that the deal arose from over a year of negotiations and that both sides gave up something of value in exchange for limiting risks involved in the litigation, Sooknanan wrote.<\/p>\n \u201cThis is not to say that this settlement is run-of-the-mill,\u201d she wrote. \u201cThe SEC admits that it has never before \u2018settled a Section 13(d) violation with a trust without the trustee or beneficiary.\u2019 And the Trust seems like a particularly odd candidate for the SEC to break that new ground\u2014after all, as mentioned, the Trust is a revocable trust with Mr. Musk as its sole trustee and beneficiary.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe SEC has decided not to press for relief that could compensate Mr. Musk\u2019s alleged victims, instead settling…\n","protected":false},"author":2,"featured_media":753436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28],"class_list":["post-753435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/753435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=753435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/753435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/753436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=753435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=753435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=753435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}