Federal Judge Withdrawals Stall Elon Musk’s X Lawsuit Against Advertisers

A second federal judge in Texas has stepped away from presiding over Elon Musk’s X Corp lawsuit against a group of advertisers accused of boycotting the social media platform, causing significant delays in the case.

Judge Ed Kinkeade Steps Aside

U.S. District Judge Ed Kinkeade in Dallas recused himself from the case, following the earlier withdrawal of U.S. District Judge Reed O’Connor. Kinkeade offered no explanation for his recusal, as permitted under federal judicial rules. U.S. District Judge Jane Boyle, also based in Dallas, has now been randomly assigned to oversee the case and a related lawsuit filed by the video-sharing platform Rumble.

The lawsuit, filed by X in August, alleges that the World Federation of Advertisers and several major corporations conspired to boycott the platform after Musk’s acquisition in 2022, leading to significant revenue losses. Neither Kinkeade nor Boyle has commented on the recent developments, and X Corp, the World Federation of Advertisers, and the defendants have all declined to issue statements.

Complications in the Case’s Progression

The case has faced hurdles from the outset. Judge O’Connor, originally assigned to the lawsuit, recused himself in August after reports surfaced that he owned shares in Tesla, another Musk-led company. He did not disclose the reason in his filing, which is customary in such situations.

X has not seen any formal response in court from the defendants regarding its claims of advertising conspiracy. Meanwhile, the company continues to adjust its legal strategies, including updating its terms of service in October to mandate lawsuits against it be filed exclusively in the Northern District of Texas or state courts in Tarrant County.

A Conservative-Friendly Venue

The Northern District of Texas, which includes courts in Dallas and Fort Worth, has become a preferred venue for conservative litigants. All three judges involved in the case—O’Connor, Kinkeade, and Boyle—were appointed by former President George W. Bush, highlighting the district’s alignment with conservative judicial philosophies.

Musk’s move of X’s headquarters from San Francisco to Bastrop, Texas, earlier this year further solidifies the company’s legal presence in the state. This strategic relocation to Texas’s Western District, near Austin, underscores Musk’s broader commitment to the state as a hub for his ventures.

The case, X Corp v. World Federation of Advertisers et al, continues to evolve in the U.S. District Court for the Northern District of Texas, under docket number 7:24-cv-00114-K.