X, formerly Twitter, has taken legal action against the left-leaning nonprofit Media Matters, following through with owner Elon Musk’s threat to sue. Last week, Media Matters reported that X “has been placing ads for major brands” like Apple and IBM “next to content that touts Adolf Hitler and his Nazi Party.”
Musk and X CEO Linda Yaccarino have criticized the report, calling it unrepresentative of X’s general user experience. Despite their defence, several companies withdrew ads after the report and Musk’s direct endorsement of an antisemitic conspiracy theory. Musk’s lawsuit claims that Media Matters is legally responsible for X’s financial losses.
Simultaneously, Texas Attorney General Ken Paxton initiated an investigation into Media Matters for “potential fraudulent activity.” The lawsuit accuses Media Matters of interference with contract, business disparagement, and interference with prospective economic advantage. Musk’s lawsuit suggests that Media Matters manipulated X’s algorithms to make it serve offensive ads, creating a false impression of these pairings.
The legal action accuses Media Matters of manipulating the user experience on X, bypassing safeguards, and creating images of X’s largest advertisers’ paid posts next to racist and incendiary content. While Musk and Paxton do not argue that Media Matters falsely claimed to see ads on pro-Nazi content, the lawsuit alleges that the organization engaged in manipulation to create false impressions.
Media Matters President Angelo Carusone maintains that the organization will continue its work undeterred and stand behind its reporting. Carusone describes Musk’s lawsuit as “frivolous” and meant to silence X’s critics. He emphasizes that Media Matters looks forward to winning in court.
Despite potential challenges in proving claims due to the First Amendment’s high bar for legally prosecuting speech, Musk, as one of the world’s richest individuals, possesses significant resources. X appears to be strategically filing the lawsuit in Texas, providing protection against claims of a strategic lawsuit against public participation (SLAPP), which it might face in its home base of California. Additionally, moving the lawsuit to Texas places it under the Fifth Circuit Court of Appeals, known for its sympathy toward conservative figures claiming censorship.
Yaccarino, X’s CEO, maintains that advertisers are not permanently pulling back from X. In an all-hands meeting after the lawsuit, she stated, “Some advertisers may have temporarily paused, but I do want to go on record, I had several really good conversations today.” Yaccarino encouraged employees to be fiscally responsible to offset potential losses from advertisers and urged them to collaborate in bringing new revenue into the company.
