In a written statement, Texas Attorney General Ken Paxton stated that a lawsuit was filed against Media Matters for America, which published a report claiming that X "placed pro-Nazi content alongside ads on the platform."
"We are closely examining the matter to ensure that the public is not deceived by the plans of radical left-wing organizations that want nothing more than to restrict freedom by reducing participation in the public sphere," Paxton said.
The Attorney General's Office statement also emphasized that it was deeply troubled by allegations that Media Matters for America "fraudulently manipulated" data at X.
X argued that the company was being "destroyed"
In a complaint filed in federal court in Texas, X argued that the NGO "knowingly and maliciously" displayed ads next to hateful posts "as if they were what typical X users experience on the platform," the Associated Press (AP) reported.
The company alleged that Media Matters for America "manipulated the algorithms" on the social media platform to show advertisers' paid posts alongside racist and inflammatory content in a report that was published to "drive advertisers off the platform and destroy Company X."
The complaint emphasized that the juxtaposition of ads and racist posts in the report was "manufactured and extraordinarily rare."
In a statement from Media Matters for America, the lawsuit was described as "frivolous". The statement said that the organization "stands behind the report and is confident that the case will be won."
Media Matters for America's allegations that "pro-Nazi content and white nationalist hashtags were placed next to ads by major companies" caused major companies such as Apple, Disney, IBM, Lionsgate, Oracle and Paramount to stop advertising on X.