diff --git a/crates/ruff_linter/resources/test/fixtures/pycodestyle/E70.py b/crates/ruff_linter/resources/test/fixtures/pycodestyle/E70.py
index 861a99cb9dd91..45d1941d22cb1 100644
--- a/crates/ruff_linter/resources/test/fixtures/pycodestyle/E70.py
+++ b/crates/ruff_linter/resources/test/fixtures/pycodestyle/E70.py
@@ -69,3 +69,5 @@ class Foo:
 #: E701:2:3
 a = \
   5;
+#:
+with x(y) as z: ...
diff --git a/crates/ruff_linter/src/rules/pycodestyle/rules/compound_statements.rs b/crates/ruff_linter/src/rules/pycodestyle/rules/compound_statements.rs
index a8c8dd3d287b1..6dcdd19c8b4ec 100644
--- a/crates/ruff_linter/src/rules/pycodestyle/rules/compound_statements.rs
+++ b/crates/ruff_linter/src/rules/pycodestyle/rules/compound_statements.rs
@@ -24,7 +24,7 @@ use ruff_source_file::Locator;
 /// if foo == "blah":
 ///     do_blah_thing()
 /// ```
-
+///
 /// [PEP 8]: https://peps.python.org/pep-0008/#other-recommendations
 #[violation]
 pub struct MultipleStatementsOnOneLineColon;
@@ -206,12 +206,13 @@ pub(crate) fn compound_statements(
                 {
                     colon = Some((range.start(), range.end()));
 
-                    // Allow `class C: ...`-style definitions in stubs.
-                    allow_ellipsis = class.is_some();
+                    // Allow `class C: ...`-style definitions.
+                    allow_ellipsis = true;
                 }
             }
             Tok::Semi => {
                 semi = Some((range.start(), range.end()));
+                allow_ellipsis = false;
             }
             Tok::Comment(..) | Tok::Indent | Tok::Dedent | Tok::NonLogicalNewline => {}
             _ => {
@@ -223,6 +224,7 @@ pub(crate) fn compound_statements(
 
                     // Reset.
                     semi = None;
+                    allow_ellipsis = false;
                 }
 
                 if let Some((start, end)) = colon {
@@ -245,6 +247,7 @@ pub(crate) fn compound_statements(
                     try_ = None;
                     while_ = None;
                     with = None;
+                    allow_ellipsis = false;
                 }
             }
         }
diff --git a/crates/ruff_linter/src/rules/pycodestyle/snapshots/ruff_linter__rules__pycodestyle__tests__E703_E70.py.snap b/crates/ruff_linter/src/rules/pycodestyle/snapshots/ruff_linter__rules__pycodestyle__tests__E703_E70.py.snap
index 798febf2364a0..3d3c378dcc314 100644
--- a/crates/ruff_linter/src/rules/pycodestyle/snapshots/ruff_linter__rules__pycodestyle__tests__E703_E70.py.snap
+++ b/crates/ruff_linter/src/rules/pycodestyle/snapshots/ruff_linter__rules__pycodestyle__tests__E703_E70.py.snap
@@ -92,6 +92,8 @@ E70.py:71:4: E703 [*] Statement ends with an unnecessary semicolon
 70 | a = \
 71 |   5;
    |    ^ E703
+72 | #:
+73 | with x(y) as z: ...
    |
    = help: Remove unnecessary semicolon
 
@@ -101,5 +103,7 @@ E70.py:71:4: E703 [*] Statement ends with an unnecessary semicolon
 70 70 | a = \
 71    |-  5;
    71 |+  5
+72 72 | #:
+73 73 | with x(y) as z: ...