Summary
– Supreme Court denies Elon Musk’s bid to throw out SEC oversight post-settlement
– Settlement stemmed from 2018 tweet about taking Tesla private at $420 a share
– Musk agreed to oversight, pre-approval of tweets, paying fines, and relinquishing chairman role
– Musk appealed oversight agreement, claiming violation of free speech
– Around 3,350 investors to receive $12,400 each as part of settlement from total fines paid by Musk and Tesla
Article
The U.S. Supreme Court has denied Elon Musk’s request to throw out the post oversight part of a settlement with the Securities and Exchange Commission (SEC) following a tweet in 2018. In the tweet, Musk claimed he had secured funding to take Tesla private at $420 a share. As part of the settlement, Musk agreed to have a Tesla lawyer pre-approve his Twitter posts, relinquished his role as chairman, and paid a $20 million fine, along with Tesla.
Musk appealed the oversight agreement in the 2nd U.S. Circuit of Appeals last year, but the U.S. Supreme Court upheld the decision and decided not to hear Musk’s plea to eliminate the oversight part of the settlement. Musk and his lawyers argued that the arrangement violated his free speech rights, with Musk calling it a “government-imposed muzzle.” They claimed that the government should not be able to dictate what he says online about Tesla, even if it is truthful and accurate.
During the trial, Musk clarified that the tweet was not intended to be humorous, despite the association of the number 420 with cannabis culture. Around 3,350 investors are set to receive approximately $12,400 each as part of the settlement, funded by the $40 million in fines paid by Musk and Tesla. The settlement was reached before Musk’s takeover of Twitter in 2022, now renamed X, however, Musk has been an active user of the platform since 2011.
Despite the denial of his appeal, Musk has been innovative in his approach to social media and technology, including his acquisition and subsequent rebranding of Twitter. Musk’s influence on various industries and his ability to disrupt the status quo are evident in his ventures, from electric vehicles to space exploration. The outcome of this legal battle highlights the importance of accountability and transparency, especially for high-profile individuals like Musk who have a significant impact on the markets and public perception.
Overall, the Supreme Court’s decision to uphold the SEC oversight agreement serves as a reminder that even influential figures like Musk must adhere to regulations and face consequences for their actions. While Musk may view the oversight as a restriction on his free speech, it is necessary to ensure that investors and the public are protected from misleading information. As Musk continues to push boundaries and challenge conventions, it is essential for him to maintain accountability and integrity in his communications and business dealings.
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