A U.S. judge in Dallas has thrown out X Corp.’s antitrust lawsuit against the World Federation of Advertisers and major firms like Mars, CVS Health, and Colgate-Palmolive for allegedly boycotting Elon Musk’s social media company. The judge ruled that X failed to demonstrate any harm under federal antitrust laws. The lawsuit, filed in 2024, claimed that advertisers, through an initiative called Global Alliance for Responsible Media, withheld billions of dollars in advertising revenue from X, formerly Twitter. X and the World Federation of Advertisers have not commented on the matter.
The lawsuit alleged that advertisers conspired against X, violating U.S. antitrust laws, but CVS and other defendants denied any wrongdoing. They argued that X did not prove they colluded, as each advertiser made individual decisions on ad spending. Advertisers chose other platforms due to concerns about X’s brand safety following Musk’s 2022 takeover, where he dismissed employees maintaining a user-friendly environment. Judge Boyle dismissed the case, stating that the conspiracy did not constitute an antitrust claim.
Elon Musk’s acquisition of Twitter has led to legal challenges. Musk sued Media Matters for America after a report linked antisemitic content to ads for companies like Apple on X. Musk was recently found liable for defrauding Twitter shareholders by manipulating stock prices for his takeover bid. His lawyer criticized the jury’s verdict, claiming bias due to references to “420,” associated with marijuana culture, on the verdict form. Musk’s team seeks further review of the case by Judge Charles Breyer.
Lawyers for investors dismissed Musk’s claims of jury misconduct, emphasizing the evidence against him. Musk’s criticism of Twitter allegedly aimed to renegotiate the buyout, causing stock price drops and investor losses. The jury held Musk accountable for certain statements but not for all accusations in the case. Musk’s actions post-acquisition continue to face scrutiny.
