A U.S. judge in Dallas has thrown out X Corp.’s antitrust lawsuit accusing the World Federation of Advertisers and several major firms, including Mars, CVS Health, and Colgate-Palmolive, of unlawfully boycotting Elon Musk’s social media company. Judge Jane Boyle ruled that X failed to demonstrate any harm under federal antitrust laws. The lawsuit, filed in 2024, alleged that advertisers, through a World Federation of Advertisers initiative called Global Alliance for Responsible Media, collectively withheld billions in ad revenue from X, formerly known as Twitter.
The defendants, including CVS, denied any misconduct and called for the dismissal of the lawsuit, contending that X did not prove they colluded but rather made individual ad spending decisions. Advertisers cited concerns about X’s brand safety post-Musk’s 2022 takeover, where staff changes allegedly compromised the platform’s appeal to users and family-friendly brands.
Musk’s tenure at Twitter has led to legal disputes, such as a lawsuit against Media Matters for America over alleged antisemitic content next to ads from companies like Apple and Oracle. In a separate case, a federal jury recently found Musk liable for defrauding Twitter shareholders by manipulating the stock price in 2022. Musk’s lawyer has requested a review of the verdict, questioning the jury’s conduct.
The jury’s decision to hold Musk accountable was criticized by his legal team, who highlighted alleged trial errors, including a numerical reference to “420,” a figure associated with marijuana culture, in the verdict form. The lawyers argued that the jury’s actions were intended to send a message to Musk rather than deliver a fair judgment. Bottini and Molumphy, representing investors, dismissed the criticism, emphasizing Musk’s responsibility for his actions.
Jurors found Musk guilty based on statements questioning Twitter’s integrity post-buyout, suggesting he aimed to renegotiate terms or withdraw. Investors claimed Musk’s remarks negatively impacted Twitter’s stock value, resulting in financial losses.