The Biden administration has urged the U.S. Supreme Court to reject Elon Musk’s dispute with the Securities and Exchange Commission (SEC), marking a development in the billionaire businessman’s ongoing legal battle.
Musk sought Supreme Court intervention in December, appealing a lower court’s affirmation of his consent decree with the SEC. This decree stemmed from Musk’s 2018 tweet claiming he had “funding secured” to privatize Tesla, resulting in fraud accusations from the SEC.
As part of the settlement, Musk and Tesla each paid $20 million fines, Musk relinquished his Tesla chairmanship, and agreed to Twitter post oversight by a Tesla lawyer. Musk, who acquired and renamed Twitter, deems this decree a curb on his free speech rights.
The Justice Department contends that the decree was crafted to prevent future securities law violations by Musk.
The 2nd U.S. Circuit Court of Appeals rejected Musk’s assertions of SEC overreach and his bid to alter post-screening conditions. Musk’s attorneys argue that the decree’s pre-approval requirement for social media posts infringes on his constitutional rights, denouncing it as granting excessive power to the SEC.
Separately, the 5th U.S. Circuit Court of Appeals has decided to review its previous ruling that Musk breached labor laws by tweeting in 2018 about potential stock loss for Tesla employees joining a union. Arguments in this case were heard in January.
The legal landscape surrounding Musk remains complex, with ongoing disputes and appeals across various jurisdictions.
