X has asked the 5th Circuit Court of Appeals to overturn a district judge's decision that blocked the platform from suing advertisers. The appeal continues despite X's previous settlement with an advertiser coalition.
X filed the appeal after a federal judge ruled against the company's legal strategy targeting advertisers who reduced spending on the platform. The decision came months after X reached a settlement with the Global Alliance for Responsible Media, a group representing major advertisers.
Elon Musk's company had sued advertisers claiming they orchestrated an advertising boycott following his acquisition of Twitter and subsequent rebranding to X. The platform alleged coordinated efforts to pressure companies into pulling ad spend.
The district court's ruling significantly limited X's ability to pursue these cases. By petitioning the 5th Circuit, X seeks to continue litigation against individual advertisers and challenge the lower court's reasoning.
The case highlights ongoing tensions between X and major advertisers over content moderation policies and the platform's direction under Musk's ownership. The outcome could determine whether X can legally pursue damages from advertisers who reduced or halted spending.
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