US judge asks Musk and SEC to justify why securities settlement is 'fair and reasonable'

Tesla CEO Elon Musk's settlement with the Securities and Exchange Commission hit a snag Thursday after the federal judge charged with approving it asked them to justify the agreement.

U.S. District Judge Alison Nathan said she's required by law to determine whether the enforcement action is "fair and reasonable, with the additional requirement that the public interest not be disserved."

Former federal prosecutor Jay Hulings said the order was unusual, "but not unheard of."

"It's odd given the nature of this settlement. If there's is a class action, it's common. But just for SEC enforcement action, particularly with a big fine, it's unusual," he said.

This story is developing. Check back for updates.

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