In an ongoing legal battle with controversial billionaire Elon Musk, the U.S. Securities and Exchange Commission (SEC) has urged the Supreme Court to dismiss Musk’s appeal regarding his social media conduct. The disagreement originally arose in 2018, following Musk’s announcement via Twitter that he had secured the funding required to privatize Tesla, leading to a sudden surge in the company’s shares. The SEC subsequently sued Musk, alleging that his posts had misled shareholders.
In the settlement that ensued, Elon Musk was obliged to pay $20 million and consented to have his social media posts relating to Tesla pre-approved by an internal legal counsel, a requirement which Musk is now contesting as a violation of his constitutional free speech rights.
Musk, who doubles as the CEO of Tesla and the owner of the social media company, X Corp,
approached the Supreme Court in December, arguing that his 2018 agreement should be declared null and void. However, the SEC, represented by U.S. Solicitor General Elizabeth Prelogar, recommends that the court should reject Musk’s appeal without conducting a hearing.
“This court has consistently held that, in resolving litigation, parties may choose to waive even fundamental constitutional rights,” Prelogar stated in a
brief issued on Friday.
The case, Musk v. SEC, continues to be a precedent-setting debate for high-profile figures and the legal interplay with their social media usage.