(Washington) The U.S. Supreme Court on Monday rejected an appeal by Elon Musk over an agreement with securities regulators that requires him to obtain pre-approval for certain tweets related to Tesla, the electric vehicle company which he directs.
The justices did not comment on upholding lower court rulings against Mr. Musk, who complained that the requirement amounted to a “prior restraint” of his speech in violation of the First Amendment to the U.S. Constitution.
The case stems from messages published on the social network Twitter (now X) by Elon Musk in 2018 in which he claimed to have obtained financing to take Tesla private. The posts caused the company’s stock price to jump and led to a temporary trading halt.
The settlement with the Securities and Exchange Commission (SEC) includes a requirement that its messages on the network first be approved by a Tesla lawyer. The agreement also called for Mr. Musk and Tesla to pay civil penalties for posts in which the businessman said he had secured “secured financing” to take Tesla private at $420 per share.
Financing has not been secured and Tesla remains public.
The SEC’s first enforcement action against Mr. Musk alleged that his Twitter posts regarding going private violated the antifraud provisions of the securities laws.
The US agency began investigating whether Mr Musk violated the agreement in 2021 when he failed to get approval before asking his Twitter followers if he should sell 10% of his shares You’re here.
Elon Musk acquired Twitter in 2022.