Elon Musk’s attempt to challenge a settlement with the Securities and Exchange Commission (SEC) requiring preapproval of certain Tesla-related tweets has been rejected by the US Supreme Court.
In 2018, Musk agreed to the settlement after facing SEC scrutiny for tweeting about taking Tesla private with “funding secured.” The settlement mandated preapproval of tweets with potential material impact on Tesla.
Despite attempts to overturn or modify this provision, including an appeal to the Supreme Court, Musk’s efforts were unsuccessful. The Supreme Court’s decision upholds the appeals court ruling, maintaining the settlement’s terms.
The provision, colloquially known as the “Twitter sitter,” mandates legal oversight of Musk’s public communications about Tesla. This measure was part of the settlement that also involved Musk stepping down as Tesla chairman and paying a $20 million penalty.
While Musk’s legal team argued that the provision infringed on his free speech rights, the courts have consistently upheld the SEC’s authority to enforce oversight on Musk’s public statements regarding Tesla.
This decision underscores the ongoing regulatory scrutiny faced by Musk and Tesla, stemming from past incidents such as the “funding secured” tweet. Despite Musk’s high-profile status and legal challenges, the settlement terms remain in effect, reinforcing regulatory control over Musk’s social media activity regarding Tesla.
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