Elon Musk’s appeal to the US Supreme Court over Tesla-related Twitter posts is rejected, affirming the SEC agreement for pre-approval by an in-house lawyer.
The United States Supreme Court denied Elon Musk’s appeal in the “Twitter sitter” case. This maintains the agreement with the U.S. Securities and Exchange Commission (SEC) that he will have an internal attorney pre-approve any Tesla-related social media posts.
Elon Musk, the chief executive officer of Tesla, has yet to be successful in his appeal against the U.S. SEC, as the justices of the U.S. Supreme Court declined even to consider the arguments presented in the appeal. In 2018, Musk agreed with the SEC to have an in-house attorney pre-approve his social media postings regarding electric vehicle manufacturer Tesla.
Musk argued that his constitutional right to free expression was violated by the agreement he signed in 2018. The justices, unmoved by the allegations, categorically declined without offering additional remarks.
Musk and the SEC have been in a contentious dispute regarding his social media posts ever since he tweeted in August 2018 that “funding was secured” to take Tesla private.
As a result of the tweet and the subsequent skyrocketing Tesla share price, the SEC filed a lawsuit against the company for misleading its shareholders. Musk settled with the SEC the same week, agreeing to resign as chairman of Tesla and pay $20 million as part of the agreement.Â
“The agreement constitutes a fundamental prior restraint that is prohibited by law,” Musk’s attorneys argued in their appeal to the Supreme Court. The contested pre-approval provision persistently imbues Mr. Musk’s speech with an unconstitutional tinge whenever he contemplates organizing public communications.
In 2021, the SEC served Elon Musk with additional subpoenas in response to a Twitter referendum asking whether 10% of his stock should be sold. Musk’s legal representatives challenged the subpoena in court and advocated for his right to free speech. Last year, however, his arguments were overruled by a federal court of appeals.
The SEC opposed Elon Musk’s appeal and asked the court to dismiss his arguments without a hearing because he breached his pre-screening agreement by publishing content related to the Tesla company.
“This court has consistently held that parties may choose to waive even fundamental constitutional rights in the course of resolving litigation,” the SEC stated in a brief filed by the Biden administration’s top Supreme Court attorney, US Solicitor General Elizabeth Prelogar.
Musk maintains his advocacy for preserving free speech on Twitter (now X), the social media platform he acquired. An uncommon occurrence, the dramatic acquisition of Twitter prompted widespread layoffs, resignations, and legal action. Musk presently seeks to transform X into an all-encompassing application, gaining competition from industry titans like Disney.Â
