Elon Musk will not be able to break out of his agreement that requires moderation of his tweets about the company, Bloomberg mentioned. The judge rejected him Request To drop a 2018 deal with the US Securities and Exchange Commission (SEC) that required the company’s lawyers to approve any Tesla-related tweets. The judge also denied Musk’s request to block a subpoena related to SEC Insider trading.
Musk could not now seek to undo the agreement he had knowingly and willingly made by bemoaning simply because he felt he had to agree to it at the time but now — once the specter of litigation became a distant memory and his company, the District Court judge wrote. American Lewis Lehmann that his appreciation, it’s all indomitable – wish he hadn’t.
Musk may wish otherwise, but remains subject to the same enforcement authority—and has the same means to challenge the exercise of that authority—as any other citizen.
After Musk tweeted in 2018 that “financing insuranceTo take Tesla private at $420, the SEC filed a lawsuit saying that Musk misled investors Settlementwith Musk and Tesla agreeing to pay $20 million each and asking lawyers to review Musk’s tweets related to Tesla.
However, in the last month caught Request from a federal court to end the deal, saying he felt “forced” to sign the consent decree during a period when Tesla’s financial health was at risk. Describing himself as a “free speech absolute,” he also claimed through his attorney that the deal impinged on his First Amendment rights.
The judge also rejected Musk’s request to overturn the Securities and Exchange Commission’s subpoena over a Twitter poll He asked users whether or not they should sell Tesla stock. Officials were concerned that he might have told his brother Kimball about the survey, which prompted the brother to sell 88,500 shares just a day before his November 6, 2021 tweet. Musk said That the Twitter poll in question was only intended to gather input and not disclose information it had to report to the SEC.
“Musque may wish it to be otherwise, but remains subject to the same enforcement authority—and has the same means to challenge the exercise of that authority—as any other citizen,” wrote Lyman. “In fact, to conclude otherwise would be to consider that a serial or repeat offender of the Securities Act would be more protected against SEC enforcement than anyone who has never been charged with a Securities Act violation.”
In response, Musk’s attorney Alex Spiro said the court ruling still means he can process the SEC’s subpoenas on a case-by-case basis. “The court is simply saying that we can move to overturn these subpoenas when they are forced,” he said. Bloomberg. “Nothing will ever change the truth, which is that Elon Musk was thinking about making Tesla private and could be – all that remains after half a decade is the remaining litigation that will make that truth clearer and clearer.”
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