Tesla CEO Elon Musk has again failed to appeal a restraining order requiring lawyers to review some of his Tesla-related tweets, reports Engadget.
A federal appeals court in Manhattan rejected Musk's claim that a 2018 settlement with the Securities and Exchange Commission (SEC) unfairly imposed "prior restraints" on his free speech. The panel noted that Musk could have defended himself against the charges or negotiated a different settlement if he had wanted to tweet without the supervision of a legal guardian.
In 2018, Musk reached a settlement with the SEC after the agency accused him of falsifying statements about "securing financing" for Tesla's privatization. The settlement not only required legal approval of Musk's tweets, but also required him to step down as Tesla's chairman.
As part of the deal, Musk and Tesla paid separate fines of $20 million each. When Musk later said Tesla would produce 500,000 cars a year, the SEC tried to hold him in contempt of court. However, the judge urged all parties involved to enter into a new agreement in 2019. It gave Musk more freedom, but still required that tweets related to financial matters about Tesla be approved by his legal team.
Even so, Musk continued to argue with the Securities and Exchange Commission in the years that followed, and recently pushed for the courts to overturn the deal. He claims that the Commission exerted undue pressure on him to agree to the settlement agreement and exceeded its jurisdiction. Musk's legal team also claims the deal violates his free speech rights. Last April, a judge rejected a motion to announce the deal null and void, leading to a recent appeal.