Elon Musk's X Settles Lawsuit Against Advertisers
X, formerly Twitter, and the World Federation of Advertisers (WFA) have reached a settlement in a lawsuit filed by X against advertisers who boycotted the platform. The terms of the agreement were not disclosed.
X, the social media platform formerly known as Twitter, has settled a lawsuit it filed against the World Federation of Advertisers (WFA). The legal action stemmed from a period of significant advertiser boycotts that impacted X's revenue.
In a joint statement, X and the WFA announced they are "putting the litigation involving the Global Alliance for Responsible Media (GARM) behind them." This development marks an end to a contentious legal battle initiated by X in 2024. The lawsuit was filed after a wave of brands halted advertising on the platform, a move that reportedly cost X approximately $1.5 billion in revenue by the end of 2023.
During the height of the boycotts, X owner Elon Musk publicly expressed strong opposition to the advertisers' actions. Musk had characterized the situation as a "war" and made aggressive statements towards companies that withdrew their ad spending. The lawsuit sought to address the financial repercussions of these boycotts.
While the specific details of the settlement have not been made public, the resolution signals a de-escalation of the conflict between X and its advertising partners. The company and the WFA have indicated a desire to move past the dispute.
The settlement concludes a period of significant financial and public relations challenges for X following its acquisition by Musk.