X, previously known as twitter, has sued a non-profit organization for allegedly scrapping flawed data from the platform. Elon Musk filed a lawsuit against an anti-hate speech organization, the Center for Countering Digital Hate (CCDH), alleging that their actions caused the social media app to lose substantial revenue, amounting to tens of millions of dollars, as advertisers suspended their spending on the platform.
Advertisers Stopped Spending Money
In the lawsuit filed in a US district court, it was alleged that 16 advertisers stopped spending on the platform and paused advertising plans due to CCDH’s reports. The reports led at least eight organizations, including historical advertisers on X, to suspend their spending on the platform during June and July. The platform claimed to have lost tens of millions of dollars when the advertisers stopped paying advertisements.
Non-Profit Scrapped Flawed Data
The lawsuit also accused the CCDH of scrapping flawed data from the platform to hurt the platform. Advertisers who have stopped paid advertisements include carmaker Audi and Pfizer, the pharmaceuticals company, according to the Guardian report.