Elon Musk-owned social media platform X, has sued Media Matters after the left-leaning nonprofit claimed that X “has been placing ads for major brands” like Apple and IBM “next to content that touts Adolf Hitler and his Nazi Party.”
The report by Media Matters, which Musk and X CEO Linda Yaccarino have described as unrepresentative of X’s general user experience, has seen several companies pull their ads.
Media Matters dubbed claimed Musk directly endorsed an antisemitic conspiracy theory.
X’s lawsuit claims Media Matters is legally liable for its loss.
In a related development, Texas Attorney General Ken Paxton has opened an investigation into Media Matters for “potential fraudulent activity.”
While Paxton and X do not dispute that Media Matters saw ads on pro-Nazi content, the lawsuit alleges the organization “manipulated” the service to make X serve the offending ads.
The lawsuit also accuses Media Matters of interference with contract, business disparagement, and interference with prospective economic advantage.
In response to the lawsuit, Angelo Carusone, the president of Media Matters, said that the organization “stands behind its reporting and looks forward to winning in court.”