NEW YORK — The highest U.S. securities regulator on Tuesday mentioned Tesla Inc. CEO Elon Musk ought to stay sure by his 2018 settlement to acquire advance approval for a few of his use of Twitter.
In a submitting in federal court docket in Manhattan, the U.S. Securities and Alternate Fee additionally rejected what it referred to as Musk’s “substantively meritless” movement to quash a subpoena requesting information regarding his Twitter poll last November over whether or not to promote a few of his Tesla inventory.
A lawyer for Musk didn’t instantly reply to a request for remark.
The dispute stems from the SEC’s declare that Musk defrauded buyers on Aug. 7, 2018, by tweeting that he had “funding secured” to doubtlessly take his electrical automotive firm non-public at a premium, when in actuality a buyout was not shut.
Musk and Tesla settled by every paying a $20 million civil superb, with Musk stepping down as Tesla’s chairman.
The consent decree required Musk to acquire pre-clearance from Tesla attorneys for tweets and different public statements that might be materials to his firm.
Musk has accused the SEC of harassing him with “roving and unbound” investigations, in a bad-faith effort to micromanage and punish him for criticizing the federal government and exercising his constitutional proper to free speech.