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SC Rejects Elon Musk's Appeal to Remove Twitter Sitter; Will Still Need Lawyer to Approve His Tweets About Tesla
US Supreme Court rejects Elon Musk's plea to remove his 'Twitter Sitter'. Tesla CEO will still require a lawyer before tweeting on his account.
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The supreme court on Monday rejected an appeal from Elon Musk to remove his Twitter sitter
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The settlement requires him to get approval in advance of some tweets that relate to Tesla
The US Supreme Court has rejected Elon Musk's request to overturn a deal with the Securities and Exchange Commission that mandates that he obtain a lawyer's approval before publishing certain tweets about Tesla. After entering a settlement order with the SEC in 2018 in response to his tweets about taking Tesla private, in which he falsely declared to have "funding secured," Musk was forced to obtain approval from his so-called Twitter sitter.
However, Elon Musk has been attempting to avoid the consent decree requiring him to have a lawyer examine posts that could materially affect Tesla before publishing them ever since he agreed to the settlement.
Elon Musk's tweet in 2018 led to a settlement with SEC
Musk claimed that the requirement amounted to "prior restraint" on his expression, which violated the First Amendment, but the justices remained silent and upheld the lower court's decisions. The decision was made one day after he unexpectedly traveled to China in hopes of finalizing an agreement to launch Tesla's driver assistance features there.
The case is based on tweets that Elon Musk sent in 2018, stating that he had obtained capital to take Tesla private. The company's share price spiked as a result of the tweets, and trading had to be halted. His tweets had to be vetted by a Tesla lawyer beforehand, according to the terms of the deal with the Securities and Exchange Commission (SEC). Furthermore, it demanded that Musk and Tesla pay civil penalties for the tweets in which Musk claimed to have secured funding for a $420 per share takeover of Tesla.
In its initial enforcement action, the SEC accused Musk of breaking securities laws' antifraud provisions by tweeting about going private. The agency started looking into whether Musk broke the terms of the settlement in 2021 when he asked fans on Twitter and X whether he should sell 10% of his Tesla stock without first getting permission. Ever since Musk bought the popular social media platform, he has always been in the news for various reasons.
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