In a surprising turn of events, Elon Musk's company, X, has agreed to settle a lawsuit filed by former President Donald Trump for $10 million. This development comes after more than a year of legal wrangling following Trump's appeal of the lawsuit's dismissal. The 9th Circuit U.S. Court of Appeals recently granted a motion to dismiss his appeal, effectively closing the case that had stemmed from the deplatforming of Trump's account after the January 6, 2021, Capitol riot.
Trump's lawsuit targeted X, then known as Twitter, and its former CEO, Jack Dorsey. He argued that the social media giant had infringed upon his First Amendment right to free speech by suspending his account. The lawsuit was initially dismissed by a federal district court judge in 2022. However, Trump's team continued to pursue the matter until the recent settlement was reached, as confirmed by his attorney, John Kelly.
The deplatforming decision was made by Twitter after assessing the risk that Trump might incite further violence, especially in light of his loss to Joe Biden in the 2020 presidential election. The platform emphasized the need to maintain safety and prevent potential unrest as reasons for their action.
Elon Musk's involvement with X has been notable since his acquisition of the platform in October 2022 for a staggering $44 billion. Musk reinstated Trump's account in November 2022 and has also been overseeing the Trump administration's efforts to streamline federal government spending and staffing as the head of the Department of Government Efficiency (DOGE).
Interestingly, this settlement is not an isolated incident. Meta had also agreed to pay $25 million to settle a similar lawsuit concerning Trump's social media suspension. Additionally, Musk reportedly invested over $250 million to support Trump's re-election campaign efforts.