Media News Daily: Top Stories for 05/06/2026

Elon Musk Settles SEC Lawsuit Over Twitter Disclosure Delay

Elon Musk has agreed to settle a Securities and Exchange Commission lawsuit tied to his delayed disclosure of a 2022 Twitter stock purchase. A trust bearing Musk’s name will pay a $1.5 million civil penalty without admitting wrongdoing. The SEC alleged Musk violated federal disclosure rules by waiting 11 days to reveal his initial 5% stake in Twitter, allowing him to continue purchasing shares at artificially low prices. Regulators had previously sought $150 million in repayment, but the final settlement does not require Musk to forfeit those gains. The agreement still requires approval from U.S. District Judge Sparkle Sooknanan. Read More (Reuters Rating)

New York Times Faces Potential EEOC Lawsuit Over Discrimination Claims

The Trump administration’s Equal Employment Opportunity Commission is reportedly preparing a discrimination lawsuit against The New York Times following allegations from a white male employee who claims he was denied a promotion because of his race and gender. The Times strongly denied the accusations, calling the investigation politically motivated and tied to President Trump’s ongoing hostility toward the newspaper. The EEOC investigation reportedly included a conciliation process, which typically follows findings of “reasonable cause” to believe discrimination occurred. The case comes amid broader administration efforts targeting diversity, equity, and inclusion initiatives across workplaces. Read More (The Hill Rating)

Meta Sued for Allegedly Training Llama AI on Pirated Books

Meta and CEO Mark Zuckerberg are facing a new class-action lawsuit accusing the company of illegally downloading millions of copyrighted books and journal articles from pirate websites to train its Llama artificial intelligence model. Publishers including Elsevier, Hachette, Macmillan, and McGraw Hill, along with author Scott Turow, allege Meta copied vast amounts of pirated material to build its multi-billion-dollar AI system. The lawsuit claims Meta executives authorized the torrenting of more than 267 terabytes of copyrighted content and argues the company engaged in one of the largest copyright infringements in history. The case adds to a growing number of lawsuits against AI companies over the use of copyrighted materials in generative AI development, with courts continuing to issue mixed rulings on fair use protections. Read More (Mediapost Rating)