{"id":611526,"date":"2023-02-24T08:48:54","date_gmt":"2023-02-24T14:48:54","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/24\/sec-says-elon-musk-still-needs-lawyer-to-approve-his-tweets\/"},"modified":"2023-02-24T08:48:54","modified_gmt":"2023-02-24T14:48:54","slug":"sec-says-elon-musk-still-needs-lawyer-to-approve-his-tweets","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/24\/sec-says-elon-musk-still-needs-lawyer-to-approve-his-tweets\/","title":{"rendered":"SEC says Elon Musk still needs lawyer to approve his tweets"},"content":{"rendered":"
\n

The U.S. Securities and Exchange Commission (SEC) says Tesla CEO Elon Musk still needs to get pre-approval from lawyers before tweeting Tesla-related information.<\/p>\n

The SEC penned its renewed stance this week in a letter<\/a> to the U.S. Court of Appeals for the 2nd Circuit in New York, arguing that an earlier settlement agreement<\/a> between the agency and Musk is fully constitutional and valid.<\/p>\n

In 2018, Musk tweeted that he had \u201cfunding secured\u201d to take Tesla private for $420 per share and that investor support for the deal was confirmed. Tesla\u2019s share price fluctuated in the weeks that followed, which prompted an SEC investigation<\/a> into whether Musk had committed securities fraud.<\/p>\n

Musk and Tesla settled<\/a> without admitting wrongdoing. They each paid $20 million in fines, Musk stepped down as Tesla chairman, and he agreed to run most Tesla-related comms by a lawyer before tweeting, lest he say something that affects share price.<\/p>\n

In September 2022, Musk\u2019s lawyers filed a brief<\/a> with a court of appeals to rid the executive of a \u201cgovernment-imposed muzzle\u201d that \u201cinhibit[s] and chill[s] Mr. Musk\u2019s lawful speech.\u201d This was a month after a federal judge quashed<\/a> Musk\u2019s motion to end the same SEC settlement provision.<\/p>\n

Earlier this week, Musk\u2019s lawyers argued<\/a> that a recent jury verdict<\/a> in a separate trial should be considered in the appeal. In early February, Musk was found to be not liable for securities fraud in a class action lawsuit in which shareholders who lost money after Musk tweeted \u201cfunding secured\u201d sued the executive for damages.<\/p>\n

\u201cIn light of the jury finding that Mr. Musk\u2019s tweets did not violate Rule 10b-5<\/a>, the SEC lacks support both for\u00a0the consent decree itself\u00a0and for its arguments\u00a0on appeal,\u201d writes Spiro. \u201cThe verdict provides further reason why the public interest in avoiding unconstitutional settlements easily subsumes the SEC\u2019s purported stake in the consent decree.\u201d<\/span><\/p>\n

Lawyers can submit supplemental authorities to an appellate court after filing a brief and before the court makes a decision if they find a new legal authority that\u2019s directly related to the issue raised on appeal and has the potential to affect the outcome of the case.<\/p>\n

The SEC rebuffed Spiro\u2019s argument, saying that a jury verdict in a private securities-fraud action doesn\u2019t qualify as a \u201cpertinent and significant\u201d authority. The agency also argued that Musk \u201cwaived his opportunity to test the Commission\u2019s allegations at trial when he voluntarily agreed (twice) to a consent judgement.\u201d<\/p>\n

The agency argued that the verdict doesn\u2019t address the public interest involved in the negotiated settlement and doesn\u2019t preclude Musk from tweeting accurately about Tesla or other topics. The SEC\u2019s lawyers also questioned the legal basis for undoing the settlement years later.<\/p>\n

The court can either accept Spiro\u2019s letter or strike it down. An oral argument for the appeal is expected in the spring, but no date has been set.<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Rebecca Bellan<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) says Tesla CEO Elon Musk still needs to get pre-approval from lawyers before tweeting Tesla-related information. The SEC penned its renewed stance this week in a letter to the U.S. Court of Appeals for the 2nd Circuit in New York, arguing that an earlier settlement agreement between the<\/p>\n","protected":false},"author":1,"featured_media":611527,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1062,3883,46],"tags":[],"class_list":{"0":"post-611526","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-lawyer","8":"category-needs","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/611526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=611526"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/611526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/611527"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=611526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=611526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=611526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}