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
Vermont police search for student who vanished from Middlebury College

Tragic Discovery: Missing Vermont Student Lia Smith’s Body Found Near Middlebury Campus

During the search for a missing Vermont college student, a body has…
Security video captures moment former mayor stabbed multiple times outside his blue state business

Security Footage Reveals Former Mayor Stabbed Repeatedly Outside Business in Blue State

A dramatic incident unfolded outside a Massachusetts cannabis dispensary on Monday afternoon,…
German chancellor defends remarks on migrants suggesting citizens 'afraid to move around in public spaces'

German Chancellor Addresses Public Concerns Over Migrant Impact on Safety

German Chancellor Friedrich Merz has reiterated his stance on migration, asserting that…
Palisades Fire suspect has courtroom outburst while pleading not guilty at arraignment

Suspect in Palisades Fire Case Disrupts Courtroom During Not Guilty Plea

The man accused of igniting what authorities have called “one of the…
Chicago shooting: Family pleads for justice after Princeton Miller shot, killed in West Loop during brother's birthday celebration

Family Seeks Justice After Princeton Miller Fatally Shot in Chicago’s West Loop During Birthday Celebration

A grieving family is desperately seeking answers over a month after their…
DOJ prepares to send election monitors to California following requests from state GOPs

DOJ to Deploy Election Monitors in California at GOP’s Request

The Department of Justice is set to deploy federal election observers in…
Frantic manhunt launched after asylum seeker who sexually assaulted teen accidentally freed from prison

Intense Manhunt Underway: Asylum Seeker Mistakenly Released After Teen Sexual Assault Conviction

Criticism has been directed at the UK’s immigration system following the inadvertent…
CPS news: Some Chicago Board of Education members call for Chicago Public Sshools remote learning amid immigration operations

Chicago Board Members Urge CPS to Consider Remote Learning in Response to Immigration Actions

CHICAGO — A renewed push for remote learning in Chicago Public Schools…
Ontario premier says he'll pull ad that upset Trump so trade talks between Canada and US can resume

Ontario Premier Withdraws Controversial Ad to Reopen Canada-US Trade Dialogues

TORONTO (AP) — The Premier of Ontario, Canada’s most populous province, announced…
FBI Director Kash Patel calls Kensington drug takedown 'how you safeguard American cities'

FBI Director Kash Patel Hails Kensington Drug Operation as a Model for Urban Safety

On Friday, the FBI and federal prosecutors revealed a “landmark” indictment targeting…
ABC7 Sports Overtime: Dionne talks Chicago Bears win streak, Blackhawks point streak, Fire in playoffs

ABC7 Sports Overtime: Dionne Discusses Chicago Bears’ Winning Streak, Blackhawks’ Continued Success, and Fire’s Playoff Journey

Chicago sports enthusiasts have plenty to cheer about these days, especially with…
Convicted illegal immigrant child killer who murdered infant son arrested in Twin Cities ICE sweep

ICE Operation in Twin Cities Leads to Arrest of Convicted Child Killer and Illegal Immigrant

Homeland Security Secretary Kristi Noem recently revealed that Immigration and Customs Enforcement…