Biden administration urges US Supreme Court to reject Musk appeal in SEC dispute
Source: Reuters
March 22, 2024 6:52 PM EDT
WASHINGTON, March 22 (Reuters) - President Joe Biden's administration on Friday urged the U.S. Supreme Court to turn away billionaire businessman Elon Musk's dispute with the Securities and Exchange Commission.
Musk in December asked the justices to take up his appeal after a lower court upheld his consent decree with the SEC that arose after he posted on Twitter, now called X, in 2018 that he had "funding secured" to take his electric car company Tesla (TSLA.O) private. The SEC accused Musk of defrauding investors.
Musk's agreement was part of a settlement with the SEC under which he and Tesla each paid $20 million fines, Musk gave up his role as Tesla's chairman and he agreed to let a Tesla lawyer approve some posts on Twitter. Musk bought the social media platform in 2022 and renamed it. Musk has called the consent decree a "muzzle" on his constitutional free speech rights.
The Justice Department in its filing said that "the settlement term here was reasonably designed to minimize the likelihood that petitioner (Musk) would make future false or misleading statements in violation of the securities laws." A three-judge panel of the Manhattan-based 2nd U.S. Circuit of Appeals rejected Musk's claim that the SEC exploited the decree to conduct harassing investigations into his use of Twitter.
Read more: https://www.reuters.com/legal/biden-administration-urges-us-supreme-court-reject-musk-appeal-sec-dispute-2024-03-22/
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