Musk’s X likely to lose records appeal in Media Matters case, court says
By Mike Scarcella
Oct 21 (Reuters) -Elon Musk’s social media platform X cannot immediately obtain donor information from Media Matters in its defamation lawsuit against the nonprofit, an appeals court has ruled, finding that a judge likely erred in ordering the disclosure.
In a ruling on Sunday, the New Orleans-based 5th U.S. Circuit Court of Appeals said a Texas federal judge’s order compelling the disclosure of donor information will be paused while Media Matters appeals it.
“We doubt that X Corp. needs the identity of Media Matters’s every donor, big or small, to advance its theories,” the panel said, ruling that the information “could enable others to harass or intimidate Media Matters or its donors.”
Spokespeople for X and Media Matters on Monday did not immediately respond to requests for comment.
X sued Media Matters in November for allegedly disparaging the company and harming its relationships with advertisers.
The lawsuit said Media Matters “knowingly and maliciously” fabricated side-by-side images of major advertisers next to neo-Nazi content, driving some companies to stop or pause their spending on the site.
Washington, D.C.-based Media Matters has called the lawsuit meritless and defended what it said was an “accurate report on the platform’s extremism.” It has argued that it can’t be liable for business disparagement by reporting truthful statements.
U.S. District Judge Reed O’Connor in Fort Worth ruled in August that X could pursue its lawsuit.
X has said Media Matters' donor information is “critical” to its lawsuit because it could show whether the left-leaning watchdog group solicited donations from individuals who might be lined up against Musk.
In its appeal, Media Matters argued the lower court order was unprecedented and trampled its donors’ First Amendment rights.
For Media Matters: Andrew LeGrand, Trey Cox, Theodore Boutrous Jr and Amer Ahmed of Gibson, Dunn & Crutcher; and Abha Khanna, Aria Branch, Christopher Dodge and Jacob Shelly of Elias Law Group
For X: Judd Stone II, Christopher Hilton, Ari Cuenin and Michael Abrams of Stone | Hilton; and John Sullivan of S|L Law
Read more:
Musk's X seeks to steer lawsuits to conservative court in Texas
Elon Musk's X drops Unilever from advertiser boycott lawsuit
Elon Musk's X wins appeal to block part of California content moderation law
Media Matters must face X’s lawsuit over report about ads next to extremist posts
Reporting by Mike Scarcella
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