Why Elon Musk picked a Texas court for X-related lawsuits
What's the story
Elon Musk, the CEO of Tesla and SpaceX, has introduced a new policy that mandates all lawsuits against his social media platform X, to be filed in the Northern District of Texas, The Washington Post reports. The move is viewed by experts as "forum shopping," a tactic commonly employed by companies to obtain favorable rulings in courts.
Policy shift
New terms of service effective from November 15
The change in legal proceedings is part of X's new terms of service, which will come into effect on November 15. Unlike other tech giants like Meta that prefer courts in their home state, Musk has opted for a district with Republican-appointed judges. Musk's latest effort aims to shield X from growing criticism over election misinformation and accusations of conservative bias.
Strategic connections
Musk's political ties and X's user growth
Musk has claimed a whopping 15.5% increase in new user registrations on X, including a staggering 43% during the US election vote count. His political leanings, including support for Donald Trump, are believed to shape his legal strategy. A Trump victory could possibly lessen regulatory scrutiny on X. However, state attorneys general and others can still sue the company.
Legal expertise
Texas court's experience with tech industry lawsuits
The Northern District of Texas has become a hotspot for conservative legal challenges on matters such as immigration and gun control. However, G.S. Hans, a law professor at Cornell University points out that the judges in this district have little experience in handling lawsuits involving the tech industry. This could, in turn, affect the results of any future legal battles involving Musk's X.