A federal judge in Texas has allowed Elon Musk’s X Corp. to move forward with its lawsuit against Media Matters for America in the state. The ruling by US District Judge Reed O’Connor denies Media Matters’ motion to dismiss, despite arguments that Texas was an improper forum for the case given that X is organized under Nevada law and based in San Francisco.
X Corp. filed the lawsuit following the publication of research by Media Matters, which claimed that ads on the X platform appeared alongside extremist content. The company, formerly known as Twitter, alleges tortious interference with contract, business disparagement, and tortious interference with prospective economic advantage.
Judge O’Connor, who recently declined to recuse himself from the case despite owning Tesla stock, determined that the case could proceed in Texas as Media Matters had targeted Texas-based advertisers including Oracle and AT&T. The ruling was based on the assertion that Media Matters’ actions were intended to harm X by alienating its advertisers.
O’Connor’s decision places X in a favorable position, with the possibility of the case facing conservative-leaning viewpoints if appealed to the US Court of Appeals for the 5th Circuit. The trial is scheduled to commence on April 7, 2025. More details on the ruling can be found here.
The ruling has significant implications, particularly given Media Matters’ claim that the lawsuit was intended to dissuade critiques against X. A related ruling in the District of Columbia had previously criticized X’s claims, noting that the company did not deny the presence of extremist content alongside advertisements.
In his ruling, Judge O’Connor highlighted Media Matters’ efforts to engage Texas-based companies, concluding that these actions were sufficient to establish jurisdiction in Texas. He referenced appearances by Media Matters personnel, such as President Angelo Carusone and reporter Eric Hananoki, who discussed advertising on X and advocated for businesses to reconsider their affiliations with the platform.
Media Matters declined to comment on the ruling when contacted. The broader implications of this decision are noteworthy as X continues its legal battle with the watchdog group. For further metrics on the case, please visit the detailed report here.