Media Matters and X Corp

Media Matters for America allegedly attempted to “maliciously” dissuade advertisers from using Elon Musk’s X Corp., formerly known as Twitter, by claiming that advertisements for Apple Inc., International Business Machines Corp., and Oracle Corp. were appearing next to pro-Nazi content.

The corporation said in a complaint submitted on Monday to a federal court in Fort Worth, Texas, that “Media Matters designed both these images and its resulting media strategy to drive advertisers from the platform and destroy X Corp.”

The report by the liberal watchdog group followed a flurry of antisemitic and other hate speech on X, some of which Musk himself promoted, eliciting outrage and alienating advertisers. Apple and Walt Disney Co. have suspended or halted ad spending on the platform.

According to X, networking Matters launched a “blatant smear campaign” against Musk and the social networking platform in November by releasing over 20 pieces critical of both. In the case, Media Matters is charged with maliciously and falsely claiming that it is purposefully positioning advertisements next to antisemitic posts and unlawfully interfering with X’s relationships with sponsors.

Musk’s business is requesting a court order compelling Media Matters to promptly remove a story published in mid-November along with an undisclosed sum of money in damages. Musk made a hint that he may bring further cases in a post on X.

Musk agreed with a post last week that said Jewish people hold a “dialectical hatred” of White people, drawing fire from several Tesla investors as well as the White House. Ross Gerber, co-founder and CEO of wealth management firm Gerber Kawasaki Inc., said Thursday on CNBC that Musk’s outbursts were “destroying the brand.”

In addition to being the CEO of Tesla Inc. and the owner of X, the 52-year-old businessman is the richest person in the world. His controversial writings have made him well-known. In one of them, he claimed to have the money to take Tesla private, which sparked a shareholder lawsuit that he eventually prevailed in. However, his most recent racial and religious gaffes have drawn an unusually harsh reaction.

Hedge fund manager Bill Ackman, who said on X that Musk isn’t antisemitic and that “the world is a vastly better place because of him,” is one among those who supports Musk.

The case is X Corp. v. Media Matters for America, Northern District of Texas (US District Court), 23-cv-1175 (Fort Worth).

Benjamin Appiagyei