Elon Musk Loses His Bid to End SEC Twitter Settlement

Elon Musk will soon be able to take ownership of Twitter, but his own use of the platform will be limited by the 2018 agreement he signed with securities regulators.

A federal judge in New York rejected Mr.’s request. To terminate the Musk agreement, which requires him to run his social media posts through the company’s lawyer if the statements contain material information about his electric car company, Tesla.

Mr. Musk argued that the agreement to settle allegations of breach of securities violated his right to freedom of speech and used the agreement as an excuse for the Securities and Exchange Commission to launch an “infinite, unlimited” investigation into his public statements. He claimed that he accepted the settlement in the first place because the lawsuit could put too much financial pressure on Tesla.

Judge Lewis J. of the U.S. District Court for the Southern District of New York. “No arguments are in the water,” Lim wrote in a ruling issued Wednesday. Musk’s claims.

Mr. Musk’s statement that he agreed with the SEC’s terms was “absolutely unreliable” because of the financial burden, Judge Lehman wrote. Mr. “Already in 2018 she was a millionaire and one of the richest people in the world,” Musk, the judge said.

Alex Spiro, a lawyer for the firm Queen Emanuel Urkhart & Sullivan who represents Mr. Musk suggests an appeal.

“Nothing will ever change the truth that Elon Musk was thinking of privatizing Tesla, and it could be – what remains to be seen after half a decade is a lawsuit that will continue to make that truth clearer and clearer.” “Stay tuned,” Spiro said in a statement. He declined to comment further.

The decision came two days after Twitter’s board agreed to sell the company to Mr. Musk for 44 billion – a transaction that still has shareholder approval. He has previously criticized the social network for censoring free speech, saying it believes people should be allowed to speak more freely on Twitter, which has in recent years sought to ban misinformation, hate speech and other problematic statements on its platform.

Tesla shareholders, who do not wish to vote on the Twitter acquisition, appear to be in favor of Mr. Musk’s proposed acquisition. Shares of Tesla have fallen 17 percent since the beginning of April. This decline reflects investors’ concerns about Mr. Musk’s use of Tesla’s shares as collateral for a bank loan and surveillance on Twitter could distract him from the car business.

The court ruling was the latest round in Mr. Musk’s long-running feud with the SEC, an agency he has repeatedly mocked. The source of the controversy over Wednesday’s issue is in a Twitter post by Mr. Musk insists in 2018 that he has enough money to “secure” Tesla’s privatization. It was later revealed that he had only preliminary discussions with investors. The SEC sued him for fraud.

As part of that civil suit settlement agreement, Mr. Musk agreed with the company’s lawyers to clean up his social media posts. Mr. Kasturi, notorious for his free-wheeling public statements, was clearly facing sanctions and has been repeatedly accused of violating them.

Mr. Kasturi can’t get out of the deal “just mourning that he felt he had to agree to it at the time but now – once the idea of ​​a lawsuit is a distant memory and has become his company, in his estimation, invincible but all – wants his Did not have, “wrote Judge Lim.

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