The U.S. Securities and Exchange Commission (SEC) has said Tesla CEO Elon Musk must get prior approval from his lawyers before tweeting Tesla-related information.
The SEC announced a new stance this week by letter Before the United States Court of Appeals for the Second Circuit of New York, Early Settlement Agreement The contract between Agent and Musk is fully constitutional and valid.
In 2018, Musk tweeted that he had “secured funding” to take Tesla private at $420 a share, confirming investor support for the deal. Tesla’s stock price fluctuated in the weeks that followed, SEC investigation about whether Musk committed securities fraud.
Musk and Tesla Settlement without admitting wrongdoing. They each paid a $20 million fine, Musk stepped down as Tesla chairman, and agreed to let his lawyers handle most Tesla-related communications before tweeting.
September 2022, Musk’s Lawyers Submit Brief In the Court of Appeals for removing cadres from “government-imposed gunpoint”,[s] and cool[s] Mr. Musk’s legitimate speech.” This is federal judge ousted Musk’s motion to terminate the same SEC settlement provision.
Earlier this week, Musk’s lawyer said claimed or recent jury verdicts Should be considered on appeal at another trial. In early February, Musk was not held liable for securities fraud in a class action lawsuit filed against executives by shareholders who suffered losses after Musk tweeted that “funds were secured.” found.
“In light of the jury’s finding that Mr. Musk’s tweets did not violate, Rule 10b-5the SEC lacks support for both the consent decree itself And about that allegation on appeal,” Spiro wrote. “The ruling provides further reason why the public interest of avoiding an unconstitutional settlement easily subsumes the SEC’s alleged interest in the consent decree.”
If the attorney finds new legal powers that are directly related to the issues raised in the appeal and may affect the outcome of the case, the attorney may, after submitting the brief and before the court makes a decision, go to the Court of Appeals. Supplemental authority can be submitted to .
The SEC dismissed Spiro’s allegations, saying jury verdicts in private securities fraud litigation did not qualify as “proper and material” authority. The agency also argued that when Musk “voluntarily agreed[twice]to the Consent Decision, he waived the opportunity to test the Commission’s claims at trial.”
The agency argued that the verdict did not address the public interest involved in the negotiated settlement and did not prevent Musk from tweeting accurately about Tesla or other topics. It also questioned the legal basis for revoking the settlement a year later.
The court may choose to either accept Spiro’s letter or destroy it. Oral arguments on the appeal are scheduled for the spring, but no date has been set.
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