Supreme Court shoots down challenge to SEC ‘gag orders’ that was backed by Elon Musk, Mark Cuban

Elon Musk / Mark Cuban

The Supreme Court won’t hear a case challenging SEC gag orders brought by a former Xerox executive. 
Elon Musk and Mark Cuban filed an amicus brief in support of the challenge in April. 
The petitioner argued that gag orders pose a “sweeping restriction on freedom of speech.”

The Supreme Court won’t hear a challenge to a case about the US Securities and Exchange Commission’s ability to impose a gag order, a court order list released Tuesday said. 

The SEC has been able to impose a gag rule on anyone who settles a civil suit with them since 1972, and Reuters reported in April that the case the Supreme Court shot down ties back to a 2003 case involving former Xerox executive Barry Romeril.

Romeril, along with five other former Xerox executives, agreed to pay $22 million in 2003 to settle SEC fraud allegations connected to using unapproved accounting devices to accelerate Xerox’s revenue and pre-tax earnings. As part of the settlement, the executives did not admit or deny the SEC’s allegations. 

By 2019, Romeril asked the Us District Court for the Southern District of New York to overturn the gag rule that was imposed as a part of that settlement because he wanted to speak out about his case, Reuters reported.

The district court rejected Romeril’s challenge, and the rejection was upheld by a second circuit panel in 2021.

In March, Romeril challenged the case with the Supreme Court. He argued that the gag rule was a “sweeping restriction on freedom of speech,” Reuters reported. The New Civil Liberties Alliance now represents Romeril.

Mark Cuban and Elon Musk have voiced support in challenging the gag rule, urging the Supreme Court in April to hear the case, Reuters reported.

The pair, along with two hedge funds managers and the Investor Choice …read more

Source:: Businessinsider

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