Musk’s company, X, files a lawsuit against liberal advocacy organization Media Matters for their report on advertisements appearing next to posts from hate groups.

X Corp, a social media company owned by Elon Musk, has taken legal action against Media Matters for America, a liberal advocacy group. The lawsuit claims that Media Matters fabricated a report in order to associate X Corp’s advertisements with content from neo-Nazi and white nationalist groups, with the intention of causing advertisers to boycott the platform and ultimately harm X Corp.

The non-profit organization Media Matters, located in Washington, D.C., referred to the lawsuit as “frivolous.”

Many advertisers have decided to leave the platform formerly known as Twitter due to worries about their ads being displayed next to pro-Nazi material and hate speech, which is a common occurrence on the site. In addition, the billionaire owner, Musk, has caused further tension by sharing posts that support an antisemitic conspiracy theory.

Last week, IBM, NBCUniversal, and its parent company Comcast announced that they have ceased advertising on X following a report by Media Matters that revealed their ads were being displayed near content that glorified Nazis. This is a new obstacle for X as they attempt to regain the support of major brands and their advertising dollars, which make up the majority of X’s income.

The Media Matters report highlighted advertisements from Apple and Oracle that were displayed next to antisemitic content on X. Additionally, they discovered advertisements from Amazon, NBA Mexico, NBCUniversal, and other companies next to hashtags promoting white nationalism.

However, according to X, a company based in San Francisco, their complaint filed in a federal court in Fort Worth, Texas alleges that Media Matters intentionally and with ill intent depicted advertisements alongside offensive content, falsely presenting them as representative of the typical experience of X users on the platform.

According to X’s accusation, Media Matters altered the algorithms on the platform in order to display advertisements from paid advertisers next to offensive and inflammatory content. The complaint alleges that these pairings were artificial, forced, and highly uncommon.

According to the complaint, Media Matters accomplished this by utilizing multiple accounts that only followed specific users known for creating “extreme fringe content,” as well as accounts controlled by X’s top advertisers. This resulted in a curated feed designed to generate side-by-side placements that Media Matters could capture in screenshots, with the intention of deterring X’s advertisers.

Media Matters reaffirmed on Monday that it stands by its reporting and is confident in its ability to succeed in court.

“The intention behind this lawsuit is to intimidate those who speak out against X,” stated Angelo Carusone, president of the non-profit organization.

Texas Attorney General Ken Paxton has declared that his office will be initiating an inquiry into Media Matters for potential fraudulent behavior pertaining to the organization’s report.

Businesses have been hesitant about investing in X since Musk assumed control over a year ago.

In addition, Musk has caused controversy this month by commenting on a user who made anti-semitic statements and expressed apathy towards anti-semitism. On Wednesday, Musk replied to the user’s post by stating, “You have spoken the truth.”

There have been allegations against Musk for allowing anti-Semitic content on the platform since he acquired it last year. Recently, the content on X has been under closer examination due to the conflict between Israel and Hamas.

Linda Yaccarino, the CEO of X, stated that the company strongly believes discrimination should be universally eradicated.

Last week, she wrote on the platform, “I believe this is something we can all agree on and should.”