A federal judge in Texas has dismissed X Corp.'s lawsuit against advertisers who pulled their ads from the platform. Judge Jane J. Boyle rejected the company's claims that major brands engaged in an "illegal boycott," finding no evidence of antitrust injury. The ruling represents a significant legal setback for Elon Musk's social media venture.

The 2024 lawsuit followed advertisers' concerns about X's content moderation policies. Companies like Twitch, Shell, Nestlé, and Lego belong to the Global Alliance for Responsible Media (GARM), which advocates for platform safety standards. Boyle noted X failed to show advertisers acted to benefit competitors or prevented X from selling to other businesses.

The judge dismissed the case "with prejudice," meaning X cannot refile the lawsuit. Despite Musk previously framing the legal action as "going to war" against advertisers, X claimed in January 2026 that nearly all its top advertisers had returned. As a subsidiary of xAI, X now faces fresh allegations that its AI assistant Grok generates sexually explicit imagery of minors.