Media Matters must face X’s lawsuit over report about ads next to extremist posts
By Mike Scarcella
Aug 30 (Reuters) -A federal judge in Texas has refused to dismiss a lawsuit by Elon Musk’s social media company X accusing watchdog Media Matters of disparaging the platform in a report that said the site had placed ads for major brands next to extremist content.
In a Thursday decision, U.S. District Judge Reed O’Connor in Fort Worth said X could pursue federal claims that Media Matters “knowingly and maliciously fabricated side-by-side images” of major advertisers next to neo-Nazi content, driving some companies to stop or pause their spend on the site.
O'Connor rejected Media Matter's arguments for dismissal, including that it can’t be liable for business disparagement by reporting truthful statements. O'Connor said X had sufficiently alleged that Media Matters had acted with “actual malice” based on statements criticizing the platform.
X did not immediately respond to requests for comment.
Nor did Washington, D.C.-based Media Matters, a liberal advocacy group, which has called the lawsuit meritless and defended what it said was an “accurate report on the platform’s extremism.”
Ad revenue on X, formerly Twitter, fell after Musk purchased the site in 2022 for $44 billion. Musk’s X soon faced scrutiny over lax content moderation, as the site reinstated once-suspended accounts and brands grew concerned over their ads appearing next to inappropriate content.
The Media Matters report at the center of X’s lawsuit was published online in November. The organization said it found advertisements by IBM, Apple, Oracle and Comcast's Xfinity placed alongside posts touting Adolf Hitler and the Nazi party.
The report came a day after Musk in a post on X agreed with a user who falsely claimed Jewish people were stoking hatred against white people. Musk said that user was speaking "the actual truth." Musk later apologized.
X sued Media Matters in November in federal court in Fort Worth, which has become a favorite destination for conservatives seeking to block Democratic-backed policies. The lawsuit alleged the Media Matters report was published “with the intention of harming X and its business.”
In seeking dismissal, Media Matters said in a filing that O'Connor, who was appointed by former Republican President George W. Bush, held no power to hear the lawsuit in Texas because the reporting and publishing activity at issue was not tied to the state or otherwise focused on its residents.
O’Connor said the report’s "targeting" of Texas-based companies AT&T and Oracle was enough to give the court jurisdiction to consider the lawsuit.
The case is X v. Media Matters, U.S. District Court for the Northern District of Texas, No. 4:23-cv-01175.
For X: Judd Stone of Stone Hilton and John Sullivan of SL Law
For Media Matters: Theodore Boutrous, Amer Ahmed and Andrew LeGrand of Gibson Dunn & Crutcher and Abha Khanna and Aria Branch of Elias Law Group
Read more:
Musk appeal calls defamation lawsuit over extremist street brawl 'baseless'
Media Matters loses bid to force judge's recusal in X's lawsuit
Texas judge in lawsuit by Musk's X against advertisers exits case
Reporting by Mike Scarcella
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
