The lawsuit, filed in federal court in Texas, names the World Federation of Advertisers (WFA) as well as individual companies such as Mars, CVS, Unilever, and Orsted.

The controversy surrounding X began in the fall of 2022 when racist and antisemitic content seemingly surged on Twitter after Musk acquired the platform. Many corporations quickly distanced themselves from the platform, and Musk himself amplified controversial posts, raising concerns among advertisers.

X's lawsuit does not contest the right of advertisers to boycott but rather accuses them of conspiring together to enforce brand safety standards through the boycott. The lawsuit states, "Defendants conspired, along with dozens of non-defendant co-conspirators, to collectively withhold billions of dollars in advertising revenue from Twitter [now X]."

The Global Alliance for Responsible Media (GARM), an organization that sets brand safety standards for advertising on social media platforms, is also under scrutiny in the lawsuit. X argues that each social media platform should be free to set its own brand safety standards and believes that market forces should determine the success or failure of these standards.

X's lawsuit seeks a jury trial, requesting "trebeled" compensatory damages as well as injunctive relief, highlighting that the boycott is still ongoing and impacting the company. X claims that the boycott has hindered its ability to compete with other social media platforms, affecting its revenue and hampering its investments in new features and functionalities.

The lawsuit comes at a time when the issue of collective action among advertisers to dictate brand safety standards is under investigation by the Republican-led House Judiciary Committee. An interim report by the committee raised concerns about the potential illegality of GARM's actions and their impact on consumer choice and American freedoms.

X CEO Linda Yaccarino addressed the advertisers in a video and letter, emphasizing the disruption caused to the "marketplace of ideas" and the significant financial losses incurred by X. Yaccarino stated, "To those who broke the law, we say enough is enough. We are compelled to seek justice for the harm that has been done."

The outcome of the lawsuit could have far-reaching implications for the advertising industry and the relationship between advertisers and social media platforms. As the legal process unfolds, the focus will remain on whether collective actions by advertisers to enforce brand safety standards infringe upon the rights of platforms and their users.