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A federal court in Texas on Thursday Elon Musk's X They called on the liberal group Media Matters to reject the group's request for dismissal and allow the trial to proceed.
X on Mask Lawsuit filed Media Matters faced backlash after it published a report in November alleging that pro-Nazi posts and anti-Semitic or hateful content had appeared next to ads from major US companies on the platform. Several companies, including Apple, IBM, Comcast and Lionsgate Entertainment, suspended advertising on the platform in response to the controversy.
X disputed the Media Matters report, saying the group “completely misrepresented the actual user experience” on the platform and manipulated the algorithms that curate users' feeds to display “racist and inflammatory content” next to posts paid for by major advertisers. Lawyers representing the company said the report was “intentionally deceptive” and caused financial damage.
U.S. District Judge Reed O'Connor of the Northern District of Texas denied Media Matters' request to dismiss the lawsuit on jurisdictional grounds, ruling that X erred in failing to state a claim.
Elon Musk's X sues Media Matters, alleging data manipulation on the platform
The lawsuit by Elon Musk's X alleges that Media Matters has unlawfully interfered with existing contracts and future economic benefits, and disparaged its business. (Richard Bode/WireImage / Getty Images)
The judge ruled that the lawsuits included Texas-based companies AT&T and Oracle X's lawsuit could proceed in the district because the company was among the top advertisers targeted in the Media Matters report.
The claims in Company X's lawsuit against Media Matters include tortious interference with existing contracts, professional defamation, and tortious interference with future economic advantages. Judge O'Connor found Company X's claims plausible and allowed the lawsuit to proceed.
Elon Musk slams Media Matters as 'evil propaganda organisation' ahead of lawsuit
X has seen several prominent advertisers leave the platform amid controversy. (Jaap Arrians/NurPhoto via Getty Images/Getty Images)
The judge's ruling found that two employees of Media Matters, the defendants in the lawsuit, knew about the alleged manipulation; Chase away advertisers From Company X. Despite AT&T and Oracle being named in articles about the subject, the two employees insisted the report had nothing to do with Texas.
Media Matters has defended its reporting and called the lawsuit frivolous. FOX Business has reached out to Media Matters for comment.
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Judge's decision to deny Media Matters' motion to dismiss lawsuit X's Lawsuit A trial is scheduled to begin in April 2025.
