# **Elon Musk’s X Encounters Legal Obstacle Due to “Thermonuclear” Lawsuits Targeting Media Matters**
Elon Musk’s social media entity, X (previously Twitter), is confronting a legal challenge from Media Matters for America (MMFA) regarding what the nonprofit oversight group claims is an effort to stifle its journalism through expensive and strategically targeted lawsuits. MMFA has charged X with breaching its own terms of service (TOS) by initiating lawsuits in various jurisdictions beyond California, despite the platform’s TOS indicating that legal disputes should be resolved in San Francisco.
## **Background: X’s Legal Actions Against Media Matters**
The discord between X and MMFA originates from a report issued by the watchdog group, which purportedly revealed how adverts from leading brands were displayed next to extremist material, including posts extolling Adolf Hitler and the Nazi regime. After the publication of the report, several advertisers withdrew their budgets from X, contributing to a substantial fall in the platform’s advertising revenue.
In retaliation, Musk and X launched lawsuits against MMFA in Texas, Dublin, and Singapore, alleging that the organization manipulated X’s platform to generate false narratives that resulted in financial damages. The lawsuits contend that MMFA partook in business disparagement in the U.S. as well as defamation and malicious falsehoods in international regions.
## **MMFA’s Legal Rebuttal**
On March 10, 2025, MMFA submitted a complaint in a U.S. federal court in San Francisco, asserting that X’s lawsuits contravene the platform’s own TOS, which clearly states that any litigation associated with the use of its services must take place in San Francisco County, California.
“X Corp.’s choice to initiate lawsuits in numerous jurisdictions around the world aims to intimidate Media Matters’ reporting and inflate costs—both of which it has accomplished—and it is explicitly barred by X’s own Terms of Service,” MMFA’s complaint declared.
MMFA is pursuing an injunction to halt X’s lawsuits outside California, contending that the platform’s legal approach is a “vendetta-driven campaign of libel tourism” intended to financially burden the nonprofit by compelling it to defend itself in various courts globally.
## **Reasons X May Be Evading California Courts**
MMFA’s complaint indicates that X is intentionally sidestepping legal actions in California due to a recent judicial precedent. In March 2024, a California district court dismissed a comparable lawsuit brought by X against the Center for Countering Digital Hate (CCDH), another watchdog group that reported on the spread of hate speech on the platform.
Judge Charles Breyer determined that X’s lawsuit against CCDH was a means of punishing the organization for its speech rather than a bona fide legal grievance. MMFA contends that X’s lawsuits against them reflect a similar trend and should be adjudicated in California, where they believe the court would likely rule in favor of MMFA.
## **Consequences of X’s Ad Boycott and Revenue Decline**
Since Musk’s acquisition of Twitter in 2022, the platform has faced difficulties in retaining its advertising income. Advertisers have grown cautious regarding X’s content moderation practices, especially after Musk reinstated previously banned accounts and diminished content moderation teams.
Despite claims from X CEO Linda Yaccarino that the ad boycott has ended, external data suggests that the platform’s advertising revenue continues to be considerably below pre-Musk figures. Business Insider reported in February 2025 that while X’s pool of advertisers had expanded, its revenue still remained “far” from what it was before Musk’s takeover.
A significant concern is that even brands returning to X, such as Apple, are reported to be spending less than prior. Furthermore, X’s collaborations with adtech firms like Magnite, Google, and PubMatic require the platform to share its advertising income, further denting its revenue.
## **X’s Financial Troubles and Musk’s Efforts to Revitalize the Platform**
The financial ramifications of the ad boycott have been profound. Musk previously acknowledged that X was on the verge of bankruptcy due to dwindling revenue. Following his acquisition of Twitter for $44 billion in 2022, Fidelity estimated by late 2024 that the platform’s worth had plummeted to merely $9.4 billion.
Despite these setbacks, analysts predict that some advertisers may come back to X in 2025, especially with Musk serving as a senior advisor in the Trump administration. Moreover, Bloomberg reported in February 2025 that X was negotiating to raise as much as $44 billion from investors to alleviate its debt and bolster new product initiatives, including payment and video services.
## **Wider Implications of Musk’s Legal Approach**
MMFA’s lawsuit against X underscores broader issues concerning Musk’s attitude towards criticism and free speech. The organization asserts that Musk is trying to silence watchdog entities through legal intimidation instead of tackling the fundamental problems associated with X’s content moderation policies.
While MMFA has already expended millions defending against X’s lawsuits, other entities continue to explore the platform’s management of extremist content. The
