Musk's handpicked judge recuses himself in X vs. advertisers lawsuit
US District Judge Reed O'Connor has stepped down from presiding over a lawsuit filed by Elon Musk's X against the World Federation of Advertisers (WFA) and several major corporations. The case, initially assigned to the Wichita Falls division of the US District Court for the Northern District of Texas where O'Connor is based, alleges an unlawful boycott against X by advertisers. The judge was initially chosen by Musk for this case.
O'Connor's recusal due to conflict of interest
O'Connor's decision to recuse himself seems to stem from his financial involvement with Unilever, a defendant in X's lawsuit. "I hereby recuse myself from the above numbered case," O'Connor stated in a court filing. The case has now been reassigned to District Judge Ed Kinkeade, who operates out of Dallas. Other defendants named in X's lawsuit include Mars, CVS Health Corporation, and Orsted A/S.
O'Connor's financial disclosure reveals Unilever and Tesla stocks
O'Connor's 2022 financial disclosure report revealed that he owned Unilever stock valued at $15,000 or less, which generated a dividend of $1,000 or less during 2022. The same report also listed a purchase of Tesla stock valued between $15,001 and $50,000. However, it is unclear whether O'Connor has sold his Tesla stock as his 2023 disclosure form is not publicly available.
O'Connor's Tesla stock ownership sparks debate in another lawsuit
O'Connor's ownership of Tesla stock has been a point of contention in another lawsuit involving X and Media Matters for America. Despite this controversy, O'Connor has not recused himself from this case, suggesting that his Unilever investment was the main factor driving his recusal from the advertising lawsuit. Media Matters had previously argued that Tesla should be listed as an "interested party" in the case due to public association between Musk and the Tesla brand.
X defends O'Connor's involvement in Media Matters's case
X stated that O'Connor should not recuse himself from the Media Matters case as Tesla does not exert any control over the social media company. It described Media Matters's argument that the EV maker has an interest in the case as "tenuous and speculative." This defense comes after O'Connor had previously denied a motion by Media Matters to delay discovery until its motion to dismiss is resolved, indicating his continued involvement in the proceedings.
