Musk’s Lawsuit Against Media Matters Nears Dismissal in Texas

Musk’s Lawsuit Against Media Matters Nears Dismissal in Texas

Episode Transcript

(00:01):
Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the Shape, SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host Will Walden A
Texas judge may soon end Elon Musk's high profile legal battle

(00:22):
against Media Matters for America, as court documents and
procedural moves now point toward a possible dismissal.
Musk filed a lawsuit November of2023 after the nonprofit
watchdog published research thatshowed ads for major brands
appearing alongside pro Nazi content on The X, formerly

(00:43):
Twitter. Of course, Musk, who owns X,
called the report fraudulent andpromised what he described as a
thermonuclear lawsuit. That legal threat no longer
carries the same weight it did just about a year ago.
A Judge Mark Pittman of the US District Court for the Northern
District of Texas has asked Musklegal team to explain by August

(01:05):
21st why the case should not be dismissed for lack of
jurisdiction. This procedural demand followed
a motion for Media Matters arguing that the case belongs in
Washington, DC, where the organization is based of.
Musk's team cannot prove Texas as the appropriate venue.
The judge will likely end the case entirely rather than just

(01:27):
transfer it over to Washington. That outcome would hand Media
Matters a clear legal win after months of public sparring and
political controversy. And X Corp filed the case in
Texas, even though Media Mattersis in Washington, DC, and they
were banking on the idea that a Texas venue would provide a,
let's just say, more friendlier atmosphere for Elon Musk.

(01:48):
And X. And Musk's lawyers argued that
Media Matters had targeted Texasbased users and advertisers, but
the court has so far found thoseclaims unconvincing.
Now, the judge already ruled that Media Matters had not been
properly served with legal documents in Texas and issued an
order requiring X Corp to fix that by a specific deadline,
which the company barely met. Now, these early missteps

(02:12):
contributed to the current threat of dismissal.
And at the center of the disputeis a Media Matters report that
accused X of running ads for companies like Apple, IBM and
Oracle next to content promotingHitler and Nazi ideology.
The report included screenshots and an explanation of how the
group used X's advertising system to test ad placements.

(02:33):
Musk responded by accusing the nonprofit of manipulating the
algorithm to fabricate results. X's lawsuit claimed that Media
Matters used fake accounts and abnormal usage patterns to
trigger ad placements the regular users would not see now.
Internal data from X showed onlytwo real users had seen the ads
in question, which the company cited as evidence that the

(02:55):
report was misleading and false.Media Matters argue that its
investigation follows standard practices for AD auditing, and
several media outlets independently replicated similar
ad placements using comparable techniques.
The story led to a wave of companies pausing ad campaigns
on X and prompted political figures to weigh in on the
company's handling of hate speech.

(03:17):
Shortly after the lawsuit was filed, Texas Attorney General
Ken Paxton open a parallel investigation into media matter,
setting potential fraudulent activity.
In Missouri, Attorney General Andrew Bailey launched a similar
probe, claiming the nonprofit had intentionally harmed Ex's
business relationships. These state level efforts had
largely stalled out. Now, no formal charges have been

(03:38):
filed and no public progress hasbeen reported from either office
in several months. Lack of updates has further
undermined the narrative the Media Matters actually acted
unlawfully. New filings show that the
Federal Trade Commission also received complaints about Media
Matters conduct, but the FTC hasnot taken any public enforcement
action. Media Matters said it received

(04:00):
requests for information but hasnot been accused of wrongdoing,
An attorney familiar with the case said.
These inquiries have not moved forward in any meaningful way,
and the federal agencies involved have so far treated the
matter as a corporate dispute rather than a regulatory issue.
Musk originally framed the lawsuit as a defense of free
speech on X, arguing that Media Matters tried to create the

(04:21):
false appearance of hate speech being monetized on the platform.
However, legal experts said the suit appeared more focused on
punishing A critic than correcting any specific legal
harm. the US legal system allowsjournalists in watchdogs to test
advertising or other algorithms as long as they don't engage in
hacking or direct fraud. Media Matters said it followed

(04:44):
those rules now. The company's report came amid A
broader wave of criticism towardX for its moderation policies.
And since Elon took over, X has eliminated or weakened many of
its old content filters, leadingto a rise in hate speech and
disinformation, according to several independent research
groups. And Musk has denied these

(05:05):
findings, of course, claiming that the platform is more
transparent and open than ever. Still, brands like Disney,
Comcast, and Lionsgate have paused their advertising annex
for months, directly citing concerns about ad placement and
also content safety. Judge Pittman's request for
jurisdictional clarification does not guarantee dismissal,
though, but it puts the burden of proof on Musk's legal team.

(05:28):
If they can't establish Texas isa legitimate venue, the court
can end the case without ruling on its content.
Transferring the case to DC is unlikely, as the judge has shown
no interest in doing so. That raises the stakes of the
August 21st deadline and suggests must legal strategy may
have run out of room and time. If the case is dismissed,
Meeting Matters will face no court ruling on the merits of

(05:50):
its report, which would be a legal win but not necessarily a
reputational 1. The controversy brought new
scrutiny to its investigative tactics, and conservative
political figures have used the lawsuit to accuse the nonprofit
of partisan activism disguised as journalism.
Meeting Matters continues to insist its reporting meets
journalistic standards and serves the public interest by

(06:11):
holding tech platforms accountable.
And Elon's lawsuit began with anaggressive promise and
controversial, confrontational tone, but now it stands on
procedural ground with little visible traction going forward.
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(06:32):
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(06:56):
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