Breakingviews: Elon Musk can’t buy his other ‘censored’ opponent 2022-04-28 11:10:00

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NEW YORK, April 28 (Dumped Views by Reuters) – Sometimes the American version of capitalism seems to be working more or less as intended. Elon Musk, driven in part by what he sees as censorship by social media platform Twitter (TWTR.N)I decided to buy the company Read more for $44 billion. but Tesla (TSLA.O) The president and the richest person in the world just failed Read more In his legal quest – also rooted in free speech arguments – to get the US securities regulator off its back.

At Tesla, Musk is working under a 2018 settlement with the US Securities and Exchange Commission. Musk’s tweets and other material company data must be scrutinized before he can publish them. The billionaire finds such restrictions frustrating; He calls himself “the absolute freedom of expression” and tweets freely.

His attorneys had previously asked a New York federal judge to end the so-called approval decree with the Securities and Exchange Commission, arguing that the regulator’s behavior “crossed the line into harassment.” Earlier this month, Musk referred to the Securities and Exchange Commission as “those bastards.”

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On Wednesday to rule Judge Louis Lehmann denied the request, not uttering his words. Lehman said Musk—who was already very wealthy—signed the consent decree voluntarily, and could now not claim he should have approved it then “but now—once the specter of litigation is a distant memory and his firm has it become, in his estimation, all no Indomitable – desires he did not.

The ruling indicates, in essence, that Americans choose to waive their rights to free speech under the First Amendment all the time, including legal compromises. Moreover, one of the principles of the disclosure-based system of US financial regulation is that statements by Musk and other corporate leaders about their companies must be accurate, ensuring that investors are not misled.

The same system allows anyone rich enough to buy a company with shareholder approval, just as Musk agreed on Twitter — assuming he’s following along. Read more . Meanwhile, also Wednesday, a Delaware court delivered a possibly unintended message about the impartiality of justice with a ruling in favor of Musk in Shareholder’s suit About Tesla’s 2016 purchase of SolarCity.

Billions of cash and Musk’s take no prisoners prompted Twitter’s board of directors to quickly capitulate to his entreaties. Fortunately for regular investors, regulators and courts are not easily persuaded.

Follow @richardbeales1 on Twitter

(The writer is a columnist for Reuters Breakingviews. The opinions expressed are his own.)

context news

— A US judge on April 27 blasted Elon Musk for trying to escape a settlement with regulators that required lawyers’ prior approval for tweets related to Tesla, saying the billionaire CEO was “bemoaning” the 2018 deal now that he felt Tesla was “indomitable.” .”

The dispute stems from the US Securities and Exchange Commission’s claim that Musk defrauded Tesla investors on August 7, 2018, by tweeting that he had secured “secured financing” in order to make the electric car company private when the takeover was in fact not close. Musk’s lawyers sought to end the 2018 approval decree that settled the SEC charges, arguing that the regulator’s prosecution of Musk “crossed the line into harassment” and impeded his constitutional right to free speech.

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Editing by Lauren Silva Laughlin, Sharon Lam and Pranav Kiran

Our criteria: Thomson Reuters Trust Principles.

The opinions expressed are those of the author. They do not reflect the views of Reuters News Agency, which is committed under the principles of trust to impartiality, independence and freedom from bias.



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