FTC Settles Media Matters' Lawsuit Claiming Retaliation Over Reporting
The Federal Trade Commission (FTC) and Media Matters have reached a settlement in a lawsuit where the media watchdog claimed the FTC retaliated against it for reporting on antisemitic posts on Elon Musk's platform, X. The lawsuit was dismissed after both parties agreed to bear their own costs. The dispute began when Media Matters published a report in 2023 that led to an advertising boycott of X, prompting Musk to file a lawsuit against the group. Subsequently, the FTC issued a civil investigative demand to Media Matters, which the organization argued was retaliatory. A federal judge, Sparkle L. Sooknanan, had previously granted a preliminary injunction against the FTC's demand, citing concerns over government retaliation against constitutionally protected public debate. The FTC's appeal of this decision was ongoing until the settlement was reached.