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The Supreme Court rejects Elon Musk's attempt to free his X account from SEC oversight


The Supreme Court on Monday rejected an appeal by Elon Musk over a settlement with securities regulators that requires him to get pre-approval of some tweets related to Tesla, the electric car company he leads.

The justices declined comment in upholding lower court rulings against Musk, who complained that the requirement amounts to “prior restraint” on his speech in violation of the First Amendment.

The case stems from tweets Musk posted in 2018 in which he claimed he had secured financing to take Tesla private. The tweets caused the company's stock price to rise and led to a temporary halt in trading.

The settlement with the Securities and Exchange Commission included a requirement that his tweets first be approved by a Tesla attorney. It also called on Musk and Tesla to pay civil penalties for the tweets in which Musk said he had “secured financing” to take Tesla private at $420 per share.

Financing was not secured and Tesla remains public.

The SEC's initial enforcement action against Musk alleged that his tweets about going private violated the anti-fraud provisions of the securities laws. The agency began investigating in 2021 whether Musk violated the settlement when he failed to get approval before asking followers on Twitter, now X, if he should sell 10% of his Tesla shares.

Musk acquired Twitter in 2022.

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