Share this @internewscast.com

Tesla CEO Elon Musk is asking the U.S. Supreme Court to undo a settlement agreement that he and the automaker struck with the Securities and Exchange Commission requiring a company lawyer, or a “Twitter sitter,” to review and approve his Tesla-related tweets.

In a petition on Dec. 7, Musk’s attorneys alleged that the “Twitter sitter” provision in the agreement violated their client’s free speech rights. They argue Musk was coerced into agreeing with “unconstitutional conditions.”

The SEC charged Musk with civil securities fraud after he posted a series of tweets in 2018 saying he had “funding secured” to take Tesla private for $420 per share, and that “investor support” for such a deal was “confirmed.” Trading in Tesla was halted after his tweets, and shares remained volatile in the weeks that followed.

Musk and Tesla settled with the regulator and then revised the agreement in April 2019. Since then, the SEC has continued to investigate Musk and Tesla to ensure that they’re complying with the terms.

The settlement “restricts Mr. Musk’s speech even when truthful and accurate,” his lawyers wrote. “It extends to speech not covered by the securities laws and with no relation to the conduct underlying the SEC’s civil action against Mr. Musk. And it chills Mr. Musk’s speech through the never-ending threat of contempt, fines, or even imprisonment for otherwise protected speech if not pre-approved to the SEC’s or a court’s satisfaction.”

Musk purchased Twitter in 2022 and renamed it X this year. He is the company’s chairman and chief technology officer.

Columbia Law School professor Eric Talley, who specializes in corporate and business law, described the effort as a “swing for the fences” move in an email to CNBC. A circuit court has already refused to hear the appeal. To win a hearing from the Supreme Court, Musk would need four of the nine justices to agree to take the case.

Talley said the “unconstitutional conditions” doctrine that’s at the heart of Musk’s argument is usually “in play when the government is doling out various types of general public benefits,” such as getting a tax break for promising not to criticize the Supreme Court.

“It’s at core a very slippery doctrine,” Talley said. “But this case is more like the government agreeing to forebear from pursuing charges against someone in exchange for their agreement to cooperate with the terms of the settlement. That’s not general doling out of benefits.”

Talley added that for a person of means like Musk, it may be worth “spinning the judicial roulette wheel.”

The SEC didn’t immediately respond to a request for comment.

Separately, Tesla investors have sued the company and Musk over the “funding secured” tweets and their impact to the stock price. In February, a jury in a San Francisco federal court found Musk and Tesla were not liable in a class action securities fraud trial. The shareholders have filed for an appeal to the 9th Circuit.

Share this @internewscast.com
You May Also Like
Judge halts Homeland Security plan to end Temporary Protected Status for South Sudan

Judge Blocks Homeland Security’s Attempt to Terminate Temporary Protected Status for South Sudan

The U.S. District Court for the District of Massachusetts intervened on Tuesday,…
Caught Flat-Footed on Massive MN Fraud, Tim Walz Deflects and Points at Trump

Tim Walz Responds to Huge Minnesota Fraud Allegations, Shifts Focus to Trump

Minnesota Governor Tim Walz finds himself in a whirlwind, grappling with a…
China launches largest military drills off Taiwan in 8 months with live-fire exercises caught on camera

China’s Boldest Military Maneuvers Yet: Unprecedented Live-Fire Drills Near Taiwan Caught on Camera

On Tuesday, China conducted a significant military exercise, launching rockets into waters…
GIF of bear crawling in and out of crawl space.

Bear Continues to Shelter Beneath California Home Despite Ongoing Removal Efforts

A recent attempt to capture a hefty 550-pound bear residing beneath a…
Two African nations ban American citizens in diplomatic tit-for-tat following Trump admin move

U.S. Passport Privileges Revoked: African Nations Retaliate Against Trump-Era Diplomacy

In a dramatic diplomatic face-off, two West African countries have chosen to…
Kentucky freight train carrying molten sulfur derails, leaks hazardous chemical in Todd County

Urgent Alert: Todd County Faces Hazardous Leak as Kentucky Train Derailment Spills Molten Sulfur

Early Tuesday, over 30 freight train cars derailed in Kentucky, with at…
Isiah Whitlock Jr., actor known for 'The Wire,' 'Veep' and Spike Lee films, dies at 71

Legendary Actor Isiah Whitlock Jr. of ‘The Wire’ and Spike Lee Fame Passes Away at 71

Isiah Whitlock Jr., the esteemed actor known for his remarkable roles on…
2025 recap: New Bears era, Chicago-born Pope Leo, CPD officer killed, fiery CTA attack, Operation 'Midway Blitz', and more

Chicago’s Transformative 2025: Local Heroics, Historic Papal Event, and Unforgettable Moments

As 2025 draws to a close, ABC7 takes a moment to reflect…
Slender Man stabber Morgan Geyser is arrested

Morgan Geyser, Notorious for Slender Man Case, Recommitted to Psychiatric Facility Following Group Home Escape

A Wisconsin judge has mandated that a woman involved in the notorious…
Gov. DeSantis makes new appointment to St. Augustine Airport Authority

Governor DeSantis Appoints Key Leader to Propel St. Augustine Airport Authority Forward

With the Florida Senate’s confirmation, Daniel Bean is set to join the…
Zohran Mamdani will become first NYC mayor sworn in on Quran when he takes oath of office

Historic Moment: Zohran Mamdani to Make History as First NYC Mayor Sworn in on Quran

Zohran Mamdani is set to make history as the first New York…
Putin residence drone attack dismissed as ‘implausible’ as Ukraine accusations mount

Ukraine Points Fingers Over Drone Incident at Putin’s Residence, Raising Doubts

Allegations by Russia that Ukraine attempted a drone strike on a residence…