The agreement with the World Federation of Advertisers ends X’s appeal and closes a fight over whether brands coordinated an ad pullback after Elon Musk’s 2022 takeover.
X Corp has settled with the World Federation of Advertisers, ending a legal fight over claims that brands coordinated an advertising pullback from the platform after Elon Musk’s $44 billion takeover in 2022. X sued the WFA in 2024, alleging its Global Alliance for Responsible Media initiative helped organize a systematic illegal boycott as advertisers paused spending over brand safety concerns tied to changes in content moderation. Companies named in the complaint included Mars, CVS Health, Shell and Lego. The case faltered in court when a federal judge dismissed it in March, finding X had not shown harm under federal competition laws, and X appealed in April. The new settlement halts that appeal. In a joint statement, the two sides said they were putting the litigation involving GARM behind them and resetting their relationship. GARM had already been discontinued on August 9, 2024, and the WFA agreed not to form or restart GARM or any similar initiative. The settlement includes no admission of wrongdoing, and financial terms were not disclosed.