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
Satellite image shows Fordow nuclear facility after massive bomb strike

Satellite Photo Reveals Aftermath of Large Bomb Impact at Fordow Nuclear Site

Recent satellite imagery has unveiled the extensive aftermath following a major bombing…
‘How to Train Your Dragon’ leads US box office for second weekend in a row

“‘How to Train Your Dragon’ Dominates US Box Office for Two Consecutive Weekends”

The Universal Pictures live-action remake maintained its No. 1 spot at the…
Harvey Weinstein at his rape and sexual assault retrial.

Ex-Model Shares Disturbing Details of Forced Confessions at Harvey Weinstein Trial

THE former model who accused Harvey Weinstein of sexually assaulting her as…
Armed gunman shot dead after opening fire at Sunday church service

Gunman Neutralized After Shooting at Sunday Church Service

One person was injured at a Wayne, Michigan church on Sunday morning…
President Trump at a national security meeting.

Trump Urges Iran to Seek Peace Swiftly, Warning of Possible Return After US Destroys Secret Nuclear Facility

DONALD Trump warned “Middle East bully” Iran to make peace quickly after…
Frederick Smith, FedEx CEO, speaking at a podium.

FedEx Pioneer and Billionaire Founder Fred Smith Passes Away at 80, Survived by 10 Children

FRED Smith, the billionaire founder of revolutionary delivery firm FedEx, has died…
Satellite image showing damage to Iran's primary nuclear facility.

Stunning Satellite Images Reveal Impact of Major US Attacks on Iranian Nuclear Facilities

ASTONISHING satellite pictures have emerged of the aftermath of the US’s “devastating”…
US boosts emergency evacuations and travel warnings in Middle East

U.S. Increases Emergency Evacuations and Travel Alerts in the Middle East

In internal and public notices, the department over the weekend significantly ramped…
3 Brooks Middle School employees fired over alleged misconduct, Valley View Community Unit School District 365-U says

Joliet Incident: Teen Arrested After Shooting Injures Three on South Ottawa Street

A 15-year-old boy has been charged after allegedly shooting three other teenagers…
Hotel in China rapped by wildlife officials for using endangered red pandas to wake up guests

Wildlife Officials Criticize Chinese Hotel for Using Endangered Red Pandas to Wake Guests

They’re alarmingly cute. A hotel in China has been rapped by local…
Pope Leo XIV says there should be no tolerance for abuse of any kind in Catholic Church

Pope Leo XIV Asserts Zero Tolerance for Abuse in the Catholic Church

Pope Leo XIV has declared that the Catholic Church should have zero…
How the 'New World Order' changed pro-wrestling forever

The Lasting Impact of the ‘New World Order’ on Professional Wrestling

Back in 2002, while Mark Raimondi was waiting for his breakfast in…