WASHINGTON – The Supreme Court ruled Monday on the terms of tech billionaire and Tesla CEO Elon Musk's agreement with the Securities and Exchange Commission that requires lawyers to review some of his social media posts. rejected an attempt to challenge it.
The justices rejected Mr. Musk's appeal of a ruling in favor of the agency by the New York-based 2nd Circuit Court of Appeals.
Musk complained that the SEC had illegally imposed conditions known as “Twitter-sitter” provisions on his ability to comment online on Tesla-related issues.
He has long been an compulsive user of Twitter, now renamed X. Musk bought this social media company in 2022.
The SEC cracked down on Musk after he tweeted in 2018 that he had secured funding to take Tesla private, a move that shocked the market and initially sent the company's stock soaring. The agency said the tweets were “materially false and misleading” and violated securities laws.
Musk has agreed to settle a private securities lawsuit filed by the SEC. As part of that agreement, he agreed to a social media clause.
In a separate civil case, a jury ruled last year that Musk was not liable for misleading investors.
Musk now claims that his speech restrictions are unconstitutional and that he was effectively coerced into consenting to them. Musk's lawyers said in court documents that the SEC is waging an “ongoing campaign” against Musk.
This provision “restricts Mr. Musk's speech even if it is true and accurate. It also applies to speech that is not subject to securities laws and unrelated to the conduct that is the basis of the SEC's civil suit against Mr. Musk.” ” the lawyers added.
The SEC responded in court documents that Musk waived his right to raise arguments when he signed the settlement.
A lower court agreed to dismiss Musk's claim.