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
Ukraine arrests British suspect who allegedly aided Russia’s FSB in assassination plan

Ukraine Detains British National Accused of Assisting Russia’s FSB in Alleged Assassination Plot

The Security Service of Ukraine (SBU) has apprehended a British citizen, Ross…
Taiwan Update: POTUS Reaffirms Support, Recent KMT Legislative Actions Add to Defense Budget Uncertainty

Taiwan’s Defense Budget in Focus: President’s Backing and KMT Moves Stir Debate

On Tuesday, a significant legislative development unfolded as President Trump signed the…
Idaho bar owner faces death threats after viral promo offering free beer for assisting ICE

Idaho Bar’s Controversial ICE Promotion Sparks Backlash and Threats

Idaho saloon owner Mark Fitzpatrick has found himself at the center of…
Josh Shapiro urges Philly schools to ‘take very seriously’ antisemitism as Congress opens investigation

Josh Shapiro Calls for Urgent Action on Antisemitism in Philly Schools Amid Congressional Probe

EXCLUSIVE: Pennsylvania Governor Josh Shapiro’s office has called for the School District…
$775 million Powerball: Winning numbers for Wednesday, Dec. 3

Discover the Winning Numbers for Powerball Draw on Saturday, December 6th: Are You a Jackpot Winner?

WASHINGTON — Have you checked your tickets yet? You might be the…
Neptune Beach mayor defends $5 hourly nonresident parking rate for Beaches Town Center

Why Neptune Beach’s $5 Parking Fee for Nonresidents is Sparking Debate at Beaches Town Center

Neptune Beach is ushering in a new era of parking, following the…
Martha Moxley case: Kennedy cousin breaks silence on troubled upbringing, arrest warrant in murder mystery

Kennedy Cousin Reveals Shocking Truths in Martha Moxley Murder Mystery: Uncovering a Troubled Past and Arrest Warrant

Five decades have passed since the tragic murder of Martha Moxley, a…
FHP: Woman dead, 2 injured following multi-vehicle Jacksonville crash

Tragic Multi-Vehicle Collision in Jacksonville Claims One Life, Leaves Two Injured, Reports FHP

According to the Florida Highway Patrol, a significant accident occurred shortly after…
Police say criminal illegal alien injured 4 officers in Nebraska gas station shootout

Shocking Nebraska Shootout: Illegal Alien Sparks Chaos, Injures Four Officers at Gas Station

The suspect involved in a dramatic and violent confrontation with police at…
'Magical day of music': Hugh Jackman surprises Milwaukee high school choir

Hugh Jackman Delights Milwaukee High School Choir with Unforgettable Musical Surprise

A group of students at Milwaukee High School of the Arts were…
New theory about Chernobyl's blue dogs is disgusting

Uncovering the Shocking Truth Behind Chernobyl’s Mysterious Blue Dogs

Who’s responsible for the blue hue? Stray dogs wandering the Chernobyl exclusion…
Florida teens in custody after 14-year-old girl found shot to death, burnt: sheriff

Tragic Case Unfolds: Florida Teens Arrested in Connection with 14-Year-Old Girl’s Shocking Death and Arson

In a tragic incident in Florida, two teenage boys stand accused of…