Smiley face
Weather     Live Markets

The Supreme Court has declined to hear Elon Musk’s appeal to challenge a consent decree he signed in 2018 to settle a lawsuit from the Securities and Exchange Commission (SEC) that required him to have a Tesla lawyer review all of his tweets about the company. The SEC sued Musk in 2018 after a tweet in which he claimed he had “funding secured” to take Tesla private at $420 per share, causing Tesla’s stock price to surge. Musk settled the case that year, agreeing to pay $20 million in fines and agreeing to the “Twitter sitter” clause.

In September 2022, Musk’s lawyers appealed the decision, arguing that the “Twitter sitter” provision was “chilling Mr. Musk’s speech” and violated his First Amendment rights to free speech. However, the Supreme Court rejected Musk’s appeal without comment, upholding a previous ruling from the Second Circuit Court of Appeals. The court found that the SEC’s order was not substantially more onerous on Musk, as it required him to follow policies enforced on other top-level Tesla executives.

Musk had previously provoked the SEC in 2021 when he posted a Twitter poll asking voters if he should sell 10% of his stock in Tesla. This led to subpoenas from the agency, prompting Musk to appeal the consent decree he signed in 2018, arguing it was unconstitutional and unenforceable. Despite his efforts to challenge the consent decree, the Supreme Court’s decision not to hear his appeal means that the “Twitter sitter” provision remains in effect.

In addition to the SEC lawsuit, Musk also faced a class action lawsuit over the 2018 tweet, with plaintiffs claiming it cost investors $12 billion. However, at trial last year, Musk testified that the $420 offer was not a joke and was related to a potential bid from the Public Investment Fund of Saudi Arabia. Musk was found not liable for damages in that case. As of now, Forbes estimates Musk’s net worth at $201.5 billion, making him the wealthiest person in the U.S.

Despite the legal challenges Musk has faced regarding his tweets about Tesla, his net worth continues to rise, primarily based on his shares in his companies including Tesla and SpaceX. His net worth surged further after Tesla’s stock prices rose 12%, overtaking Jeff Bezos as the wealthiest person in the U.S. While Musk may have lost this legal battle with the SEC, his financial success continues to solidify his position as one of the most prominent and influential figures in the tech industry.

© 2024 Globe Echo. All Rights Reserved.