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Texas judge drops Musk X lawsuit against advertisers

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Texas judge drops Musk X lawsuit against advertisers

By Mike Scarcella

(Reuters) – A federal judge in Texas handling a lawsuit by Elon Musk’s social media platform X against a group of advertisers has recused himself from the case after reports emerged that he owned shares in another Musk company, Tesla.

U.S. District Judge Reed O’Connor in Fort Worth, Texas, gave no reason Tuesday in his one-paragraph motion for recusal.

The lawsuit, filed last week by X, accused the World Federation of Advertisers and others of conspiring to boycott the platform, causing it to lose revenue. The federation did not respond in court and declined to comment Tuesday.

O’Connor’s office and X spokespeople did not immediately respond to requests for comment.

NPR reported Friday that O’Connor owned shares in Tesla, raising questions about whether he should oversee lawsuits involving Musk’s companies.

A 2022 court financial disclosure report, the most recent available, showed that O’Connor owned between $15,001 and $50,000 worth of Tesla stock. Judges sometimes step away from cases when they have a financial interest in one of the parties.

O’Connor is presiding over another lawsuit filed by X last year, in which media watchdog Media Matters is accused of interfering in X’s relationships with advertisers. Media Matters denies any wrongdoing.

Musk’s case against the World Federation of Advertisers was filed in the Northern District of Texas and assigned to O’Connor, an appointment by Republican President George W. Bush. The district has become a favorite destination for conservatives suing to block policies under the Biden administration.

One of O’Connor’s colleagues, U.S. District Judge Ed Kinkeade in Dallas, was assigned Tuesday to hear X’s case over the advertising boycott.

(Reporting by Mike Scarcella; Editing by David Bario and Richard Chang)

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