Texas Judge Recuses From Musk Lawsuit Over Tesla Stock Ownership

On August 13 (Reuters) – A federal judge in Texas, who was set to oversee a lawsuit filed by Elon Musk’s social media platform X against a group of advertisers, has recused himself from the case following reports that he owned shares in Tesla (TSLA.O), another company owned by Musk.

U.S. District Judge Reed O’Connor, based in Fort Worth, Texas, did not provide an explanation in his brief one-paragraph recusal notice on Tuesday.

The lawsuit, initiated by X last week, alleges that the World Federation of Advertisers and others conspired to boycott the platform, resulting in significant revenue losses. The federation has not yet responded in court and declined to comment on Tuesday.

Neither O’Connor’s office nor spokespeople for X responded to requests for comment. NPR reported on Friday that O’Connor owned Tesla shares, raising concerns about potential conflicts of interest in cases involving Musk’s businesses.

A 2022 judicial financial disclosure report, the most recent available, indicated that O’Connor owned between $15,001 and $50,000 in Tesla stock. Judges often recuse themselves from cases when they have a financial stake in one of the parties involved.

O’Connor is also presiding over another lawsuit filed by X last year, accusing the media watchdog group Media Matters of interfering with its relationships with advertisers, a claim Media Matters has denied.

The case against the World Federation of Advertisers was initially filed in the Northern District of Texas and assigned to O’Connor, an appointee of Republican President George W. Bush. The district has become a popular venue for conservatives challenging policies of the Democratic Biden administration.

On Tuesday, U.S. District Judge Ed Kinkeade in Dallas was assigned to hear X’s advertising boycott case.