U.S. District Judge Ed Kinkeade has recused himself from overseeing X Corp.’s lawsuit accusing the World Federation of Advertisers (WFA) and others of conspiring to withhold advertising revenue. Filed in August, the lawsuit alleges that the defendants, through the WFA’s Global Alliance for Responsible Media (GARM), orchestrated a group boycott costing X Corp. billions in ad revenue.
The case has been reassigned to U.S. District Judge Jane J. Boyle, with Judge Kinkeade offering no explanation for his decision in Thursday’s docket notice.
Allegations of Conspiracy
Elon Musk’s X Corp., previously known as Twitter, claims that major advertisers, including CVS Health, Mars Inc., and Ørsted, collectively reduced or ceased ad spending on the platform. The suit stems from a House Judiciary Committee Republican report criticizing efforts to limit advertising near “disfavored” content, framing it as an illegal group boycott.
The lawsuit initially named Unilever as a defendant, but the company was dropped in October. The complaint asserts that X has implemented content moderation and brand safety measures matching or exceeding industry standards, contrary to claims of rampant hate speech and misinformation under Musk’s leadership.
Musk’s Public Statements
Musk has been vocal about advertisers’ actions, urging businesses to sue over boycotts and suggesting potential criminal liability under the RICO Act. Declaring it “war” after attempting to reconcile with advertisers for two years, Musk remains a prominent critic of GARM’s practices.
GARM’s Role and Dissolution
Launched in 2019, GARM aimed to reduce harmful content supported by advertising. While the WFA claimed success in lowering such content’s prevalence, it dissolved the initiative days after X filed its lawsuit.
Representation in the Case
X Corp. is represented by John C. Sullivan, Jace R. Yarbrough of SL Law PLLC, and Dhillon Law Group Inc. attorneys. The defendants have separate legal teams, including Bradley Arant Boult Cummings LLP for the WFA, Skadden Arps Slate Meagher & Flom for Mars, and Vinson & Elkins LLP for Ørsted.
