Tuesday, March 29, 2022

Elon Musk claims SEC ‘misconduct’ as Tesla CEO seeks end to limits on tweets

Elon Musk accuses the US Securities and Exchange Commission of “misconduct” as Tesla Inc’s chief executive tries to pull out of a 2018 deal with the regulator, limiting his Twitter posts about the electric carmaker .

Musk wants to block an SEC subpoena seeking information about Tesla’s public-disclosure controls and in 2018 agreed to undo a set of court orders that led to an in-house official relating to his company. Tweets were reviewed. Known as the “twitter sitter” of the CEO.

Musk’s attorneys said in a New York court filing Tuesday, “The SEC argues that it has the absolute right to do whatever it wants, whenever it wants, as long as it receives a formal order.” ” “But there are limits to the investigative power of the SEC, especially once, as here, it is specifically taking advantage of a binding order recorded and supervised by this Court.”

According to the court filing, Musk accused the SEC of “misconduct” in its investigations of him and Tesla.

The SEC declined to comment.

Musk, who earlier this month asked a judge to end monitoring of his tweets, claims the SEC is harassing him with demands for an overly comprehensive investigation and that the 2018 deal violates his right to free speech. Is. He rejected the agency’s arguments that he independently agreed to the limits and that a review of his tweets by the company’s securities attorney did not amount to government regulation of his speech.

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“It is irrelevant to whom the SEC has assigned this duty; Mr. Musk’s speech is restricted as a result of the SEC’s prosecution,” he said in a federal court filing.

The SEC has said it has a “legitimate purpose” in investigating whether Tesla has institutional control over corporate disclosures and whether Musk is complying with them.

The case is in US Securities and Exchange Commission v. Musk, 18-CV-08865, US District Court, Southern District of New York (Manhattan).

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Originally published at Pen 18

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