Tesla Inc (NASDAQ:TSLA) boss Elon Musk is trying to overturn part of a regulatory ruling that requires his tweets to be pre-approved by company lawyers.
Signed in 2018, the consent decree from the US Securities and Exchange Commission (SEC) was imposed following a lawsuit that saw Musk accused of defrauding investors through a tweet he sent out in August that year.
His famous “funding secured" tweet claimed that funds had been arranged by backers to allow him to take the electric vehicle company private, though it turned out that a buyout was not even close.
Musk has since defended himself, saying the tweet was truthful.
As part of the agreement with the SEC, Musk stepped down as Tesla chairman and was made to pay US$20mln, alongside Tesla, in civil fines. He is also required to have tweets about Tesla checked by a lawyer before they are posted.
In a brief filed to the 2nd US Circuit Court of Appeals in Manhattan on Tuesday, Musk’s lawyers referred to the pre-approval mandate as a “Government-Imposed Muzzle,” arguing that the requirement violated US constitution.
US district judge Lewis Liman, who previously rejected Musk’s bid to scrap the consent decree altogether, said Musk is arguing now “his company has become, in his estimation, all but invincible."
The SEC is yet to respond and is expected to file its own brief with the appeals court.