After the torrent of prominent brands such as Apple, Disney, NBCUniversal and more halting their advertisements on X, the social networking platform, now under Elon Musk, is suing publication Media Matters for America for allegedly maliciously trying to drive away advertisers from the social media platform with its analysis reports highlighting antisemitic and pro-Nazi content on X. Media Matters of America, however, has denied these allegations.
In the filed complaint in federal court in Fort Worth, Texas, on Monday, the company stated: “Media Matters for America designed both these images and its resulting media strategy to drive advertisers from the platform and destroy X Corp.”
Moreover, the lawsuit will include compensation for unspecified monetary damages and an immediate deletion of Media Matters for America’s article titled: “As Musk endorses antisemitic conspiracy theory, X has been placing ads for Apple, Bravo, IBM, Oracle, and Xfinity next to pro-Nazi content.”
How Did the Battle Between X and Media Matters for America Start?
The war started on November 15 last week, with Elon Musk agreeing with an X user who had asserted that Jewish people “have been pushing the exact kind of dialectical hatred against whites that they claim to want people to stop using against them”, with Musk responding, “You have said the actual truth.”
His comments immediately triggered a backlash from several Tesla investors, with even the White House condemning Musk for his actions. 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.”
The situation quickly escalated the next day as Media Matters for America released their research finding that five massive brands such as Apple, IBM, NBCUniversal’s Bravo, Oracle and Comcast’s Xfinity, had their ads run next to posts that “Tout Hitler and his Nazi Party” on X. Media Matters for America followed up the next day by posting a report claiming that it found ads for Amazon, NBA Mexico, NBCUniversal Catalyst, Action Network and Club for Growth next to white nationalist hashtags like KeepEuropeWhite, White Pride, and WLM(White Lives Matter).
Thus, with the massive brands withdrawing their advertisements on X, Elon Musk teased and threatened a thermonuclear lawsuit against Media Matters of America on Saturday with the words: “ALL those who colluded in this fraudulent attack on our company, their board, their donors, their network of dark money, all of them.”
Media Matters of America immediately responded the same day and vowed to defend itself. Furthermore, the company was confident in itself to win the lawsuit. “Far from the free speech advocate he claims to be, Musk is a bully who threatens meritless lawsuits in an attempt to silence reporting that he even confirmed is accurate. Musk admitted the ads at issue ran alongside the pro-Nazi content we identified. If he does sue us, we will win.”
Elon Musk’s X Sues Media Matters for America for Defamation
Thus, with the parting words of “They pulled a scam” on early Sunday, Elon Musk and X have now sued Media Matters for America in a lawsuit filed in the U.S. District Court for the Northern District of Texas Fort Worth Division, alleging the organisation’s tactics were manipulative and deceptive.
In the lawsuit, they highlighted that Media Matters for America is actively portraying X as a social platform dominated by white nationalist and antisemitic conspiracy theories, with evidence hinting that Media Matters for America has released over twenty articles and counting this November alone disparaging both X Corp. and Elon Musk — a blatant smear campaign.
Furthermore, the lawsuit stated that Media Matters for America only “Exclusively followed a small subset of users consisting entirely of accounts in one of two categories: Those known to produce extreme, fringe content, and accounts owned by X’s big-name advertisers.”
In addition, the lawsuit highlighted that the media watchdog is generating 13-15 times more ads per hour than the average X user in order to get the result it wanted (Controversial content next to X’s largest advertisers). Thus, “The end result was a feed precision-designed by Media Matters for a single purpose: to produce side-by-side ad/content placements that it could screenshot in an effort to alienate advertisers.”
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X CEO Linda Yaccarino Defends Herself and the Company
Amidst the war between X and Media Matters for America, some marketing leaders have sought the resignation of X CEO Linda Yaccarino. For example, Lou Paskalis, founder & CEO of marketing consultancy AJL Advisory and former head of global media at Bank of America, said he texted Yaccarino on Sunday afternoon and urged her to leave before her reputation is damaged.
In his words, he stated: “The issue is no longer about content adjacencies or content moderation. It’s simply that the owner is not someone marketers can do business with. I think the advertising community is now working to save the reputation of a beloved member of our industry who does not share Elon Musk’s views and certainly did not know them when she accepted the CEO role. If she did, she would not have accepted it.”
However, despite their well-being, Linda Yaccarino has come forward and defended herself on her platform yesterday. “If you know me, you know I’m committed to truth and fairness. Here’s the truth. Not a single authentic user on X saw IBM’s, Comcast’s, or Oracle’s ads next to the content in Media Matters’ article. Only 2 users saw Apple’s ad next to the content, at least one of which was Media Matters. Data wins over manipulation or allegations. Don’t be manipulated. Stand with X.”
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What Is the Aftermath of the Lawsuit?
Following the lawsuit, Texas Attorney General Ken Paxton announced that he would investigate Media Matters for America’s review of X’s content to determine whether it constituted “potential fraudulent activity” under Texas law.
With representatives of Media Matters not immediately responding to requests for comments, Paxton called the group a “radical left-wing organisation” that “would like nothing more than to limit freedom by reducing participation in the public square.”
Therefore, we can conclude that Elon Musk’s X has the initiative in this lawsuit, and we can only wait for Media Matters for America to respond. To follow the latest news of this case and many others, follow our Facebook and Instagram pages for daily and spontaneous updates.