Judge Recuses from X's Antitrust Lawsuit Against Advertisers Over Tesla Stock Conflict
Judge Steps Down from X’s Lawsuit Against Advertisers
U.S. District Judge Reed O’Connor has recused himself from overseeing X’s lawsuit against several major advertisers, according to a notice dated August 13. The Texas-based judge did not provide specific reasons for his decision to step down from the case.
The recusal comes in the wake of a recent NPR report revealing that Judge O’Connor owned Tesla shares in 2022. This information raised potential conflict of interest concerns, given that X, formerly known as Twitter, is owned by Elon Musk, who is also the CEO and largest shareholder of Tesla.
X’s lawsuit, filed against prominent advertisers including Unilever, Mars, CVS Healthcare, and Orsted in Europe, accuses them of antitrust behavior. The social media platform has also named the World Federation of Advertisers (WFA) in the legal action.
In response to the lawsuit, the WFA has suspended operations of its Global Alliance for Responsible Media nonprofit initiative.
Judge O’Connor, a former aide to U.S. Sen. John Cornyn, R-Texas, and a former federal prosecutor in North Texas, has not commented on his decision to recuse himself from the case.
This development occurs against the backdrop of Tesla facing increased competition in China and slower electric vehicle adoption rates in the United States, according to recent market analyses.
As the legal proceedings continue, the appointment of a new judge to oversee X’s lawsuit against advertisers is expected in the coming days.
