By Mike Scarcella

WASHINGTON, April 17 (Reuters) - Elon Musk’s SpaceX has agreed to settle a lawsuit in U.S. federal court that alleged a California agency illegally cracked down on the company's rocket launches in the state in retaliation for Musk’s political views.

SpaceX and the California Coastal Commission on Friday asked U.S. District Judge Stanley Blumenfeld Jr in Los Angeles to dismiss the lawsuit.

The terms of the settlement have not yet been publicly disclosed. SpaceX and the commission asked Blumenfeld to retain power to enforce the agreement, including any future disputes over its provisions.

SpaceX and its lawyers did not immediately respond to requests for comment. A spokesperson for the commission said it would not comment until the settlement provisions are made public.

The commission oversees use of land and water within the state’s more than 1,000 miles of coastline.

SpaceX sued the commission last year after it rejected the company's plan to expand its rocket launches from the Vandenberg Space Force Base in Santa Barbara. The panel said the launches qualified as commercial activity that needed to meet state regulatory requirements.

The U.S. Air Force objected and said it would proceed anyway with additional SpaceX launches. SpaceX contracts with the U.S. government on satellite deployment and other payloads.

The lawsuit followed comments from a commissioner who criticized Musk’s statements during the 2024 presidential election, won by Republican Donald Trump. Musk at the time was backing Trump.

In July, Blumenfeld ruled that SpaceX had presented enough information for now to support its claims that the California Coastal Commission was singling out the company for greater regulatory scrutiny.

SpaceX was seeking a court declaration that the commission’s demand for a coastal development permit is unlawful.

The case is Space Exploration Technologies Corp v. California Coastal Commission et al, U.S. District Court for the Central District of California, No. 2:24-cv-08893-SB-SK.

For plaintiff: Tyler Welti, Colin Vandell and Mitchell Mirviss of Venable

For defendants: David Alderson and Jessica Bonitz of the California Attorney General’s Office

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