The Biden administration has asked the Supreme Court to reject Elon Musk's appeal to the Securities and Exchange Commission.
The dispute with Musk began with a 2018 tweet about privatizing #Tesla that led to a settlement with the #SEC .
The settlement included a $20 million fine against Musk and Tesla and also required prior approval of Musk's tweets.
Billionaire #Elon Musk, who never shies away from a Twitter brawl or a rocket launch, has once again found himself in the legal spotlight. What's all the fuss about? Well, let me explain.
Once upon a time, specifically in 2018, Musk caused a stir by tweeting that he already had the money to take Tesla, the inventor of electric cars, out of #the stock market. The tweet caused quite a stir and led to the US Securities and Exchange Commission (SEC) accusing Musk of playing on investor confidence. The drama didn't end with the tweet, but escalated into a full-blown legal battle that eventually resulted in a settlement agreement in which Musk and Tesla each paid a $20 million fine. Musk also had to step down as chairman of Tesla's board of directors and agree to have his tweets pre-screened by Tesla's legal staff.
In 2022, not wanting to stay caged, Musk bought Twitter and changed the company's name to X. The plot twists, however. Feeling that Twitter's freedom was being restricted, Musk decided to challenge the SEC's decision as a violation of free speech.
The legal battle reached the federal Supreme Court after a lower court sided with the SEC and essentially told Musk that he could not "opt out of the contract to pre-screen tweets. " Now the Biden administration, through the Department of Justice, has entered the fray and is asking the Supreme Court to reject Musk's appeal. Their arguments are based on the fact that the agreement is a fair measure to prevent Musk from misleading investors again.
However, Musk's lawyers disagree.
So why is the Biden administration taking such a keen interest in Musk's legal battle?
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