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Column: With lawsuit against advertisers, Elon Musk plumbs new depths of asininity

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Column: With lawsuit against advertisers, Elon Musk plumbs new depths of asininity

Let’s play a parlor game titled “What’s the dumbest thing Elon Musk has ever done?”

Is it promoting tweets from outspoken antisemites and racists on X, formerly Twitter, the social media platform he owns? Embracing antisemitic tweets himself?

Or was it, telling some of the largest corporations in the world to, um, perform a sexual act on themselves because they stopped advertising on the platform? (Warning: Link not safe for work.)

Maybe the top prize goes to his reinstating thousands of accounts of Nazis, white supremacists and disinformation purveyors that had been banned from Twitter by its previous management?

We tried peace for 2 years, now it’s war.

— Elon Musk announces a lawsuit against companies that refuse to place ads on X

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Actually, my vote goes to the federal lawsuit X filed on Aug. 6 accusing big advertisers of colluding in a boycott of the platform, ostensibly because they disapprove of its content.

The filing was announced in a video tweet by Linda Yaccarino, the chief executive of X. Yaccarino’s hostage-like affect and her theatrical hand-wavings in the video are so eerie that some viewers speculated, also on X, that the video is an AI-generated deepfake. And why not? Musk himself promoted on X a deepfake fabricating a purported speech by Kamala Harris with the words, “This is amazing.”

The lawsuit targets the World Federation of Advertisers, a networking organization for big advertisers. It specifically names WFA and four companies — the Danish energy company Ørsted, CVS Health and the consumer companies Unilever and Mars. Why it singles out those companies isn’t entirely clear, though it’s notable that they are members or have leadership positions in the Global Alliance for Responsible Media.

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GARM, as the lawsuit asserts, was founded to establish brand safety standards for advertisers on X and other social media platforms. In other words, standards to help advertisers keep their messages from showing up alongside posts and accounts promoting hate speech and other noxious messages.

The lawsuit and Yaccarino’s video assert that the advertisers colluded through GARM to boycott X, depriving it of its lifeblood, advertising revenue. “That puts your global town square, the one place that you can express yourself freely and openly, at long-term risk,” Yaccarino said.

Leaving aside this rather inflated and anachronistic description of X — its status as a “global town square” hasn’t survived Musk’s acquisition of the platform in 2022 — the idea that you can sue corporations for deciding not to advertise with you is beyond absurd.

A couple of points about all this:

First, the lawsuit piggybacks on a report issued last month by the Republican staff of the House Judiciary Committee, which is chaired by that outstanding blowhard, Rep. Jim Jordan of Ohio. One in an ever-lengthening line of useless, conspiracy-addled reports from the GOP House caucus — see, for example, its ignorantly anti-scientific screeds about the origins of COVID — this one was oh-so-cleverly titled “GARM’s Harm” and claimed that GARM members colluded to put X out of business.

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“I was shocked by the evidence uncovered by the House Judiciary Committee that a group of companies organized a systematic illegal boycott against X,” Yaccarino says, ludicrously.

More to the point, this lawsuit reflects Musk’s habit of blaming X’s financial ills on everyone but himself. Over the last year or so, X has sued the watchdog organizations Media Matters for America and the Center for Countering Digital Hate for trying to “censor” X by asserting — inaccurately, X says — that the platform has become a haven for pro-Nazi content and other hate speech.

Musk also threatened to sue the Anti-Defamation League for purportedly pressuring companies to stop advertising on X because of the apparent rise in hate speech. That lawsuit never materialized. The Media Matters lawsuit is pending. The case against CCDH was thrown out by U.S. Judge Charles R. Breyer of San Francisco in March. More on that in a moment.

Put it all together, and it appears that Musk doesn’t realize that X needs advertisers more than they need X. The platform was generally an also-ran as an advertising medium online, trailing Meta and Google. Under Musk, it may have fallen further behind.

The first hint of the cynicism attending this lawsuit comes from where it was filed. As X notes in its complaint, among the defendants the World Federation of Advertisers is headquartered in Belgium, Ørsted in Denmark, Unilever in London, Mars in Virginia and CVS Health in Rhode Island. X itself is headquartered in San Francisco.

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So of course Musk filed the lawsuit in Wichita Falls, a North Texas community with a population of 102,000, which makes it the 39th-largest city — in Texas. What Wichita Falls does offer litigants of a certain ideological slant, however, is a one-judge federal court.

That judge is Reed O’Connor, a right-wing George W. Bush appointee whose hit parade includes rulings invalidating government anti-discrimination laws protecting transgender rights, blocking a COVID vaccine mandate for Navy SEALs and declaring the entire Affordable Care Act unconstitutional. (That last ruling was overturned by the Supreme Court, 7 to 2.)

O’Connor, by the way, is also presiding over the lawsuit against Media Matters. A year ago he reported owning shares worth $15,001 to $50,000 in Tesla, the electric vehicle company Musk controls.

Unsurprisingly, none of these lawsuits alludes, even in passing, to the possibility that the steep decline in revenues or advertising from major consumer firms at X might have something to do with Musk’s policies and behavior.

The lawsuits generally describe their goal as the protection of free speech and open debate online, and present X as the innocent target of one cabal or another.

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Judge Breyer in San Francisco made short of that claim in his dismissal of the lawsuit against CCDH; indeed, he found that the shoe was on the other foot. “This case is about punishing the Defendants for their speech,” he ruled. (My emphasis.) He rejected X’s assertion that it had lost “at least tens of millions of dollars” because of CCDH’s reports of the presence of hate speech on X, finding that the platform couldn’t document that its losses were traceable to CCDH reporting or that the money could be recovered even if it could do so.

“X Corp.’s motivation in bringing this case is evident,” Breyer ruled. “X Corp. has brought this case in order to punish CCDH for CCDH publications that criticized X Corp. — and perhaps to dissuade others who might wish to engage in such criticism.” X’s demand for tens of millions of dollars in compensation, he found, seemed designed to “torpedo the operations of a small nonprofit … because of the views expressed in the nonprofit’s publication.”

That brings us to the new lawsuit, against the World Federation of Advertisers and the four corporations. These are defendants that might not blanch at the cost of defending what might be a frivolous lawsuit, but at some level it seems to have made them nervous: The federation said last week that it is “discontinuing” the Global Alliance for Responsible Media.

Musk and his peanut gallery crowed that this represented a victory, but it’s hardly that. The four corporate defendants — like any members of the federation or GARM — always have the right to make their own decisions about where to place their ads. Indeed, it’s inconceivable that a $60-billion multinational such as Unilever would cede those decisions on its hundreds of brands, which include Ben & Jerry’s, Dove beauty products and Hellmann’s mayonnaise, to outsiders.

It’s true that GARM developed standards to help members assess whether they wanted their ads to appear on social media platforms and methods to ensure that the platforms understood the brands’ concerns. It’s also true that advertisers expressed concerns after Musk’s acquisition, and his firing of most of the staff responsible for trust and safety at X, that the chances their ads would end up cheek by jowl with posts from malodorous tweeters would rise.

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But the GOP report acknowledges that GARM offered advice, not mandates, and that its advice was typically solicited by the advertisers themselves. What may have irked the Republicans and Musk is that most of the content that scared advertisers away tended to come from the right-wing fever swamp, which no self-respecting corporation would want to be seen endorsing.

One variety of content involved claims that evidence found on a laptop purportedly belonging to Hunter Biden, the president’s son, suggested Hunter was involved in wrongdoing. “Unilever, through GARM, … expressed issues with Mr. Musk exposing the truth about how Twitter, prior to Mr. Musk’s acquisition, censored the Hunter Biden laptop story,” the GOP report says.

The Biden allegations are cherished by the Republican right wing even though no connection to President Biden has ever been established. The GOP report says claims that “incriminating evidence about the Biden family’s influence peddling was found on Hunter Biden’s laptop … have since been authenticated,” which is untrue; that only underscores that the GOP report was a partisan smear, and not something on which X should rest its legal case.

In any event, the GOP report acknowledges that Unilever is “free to unilaterally stop spending its advertising money on [X],” which apparently has happened. Shed a tear for Musk, if you’re so inclined.

Musk may have turned into the biggest obstacle to the survival of X. Directing a profane insult at big advertisers and treating their refusal to spend their ad dollars at his hobbyhorse as “blackmail,” as he did in November, is hardly a way to cozy up to them.

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Musk tried a charm offensive this summer at the Cannes Lion Festival, which brings together international advertisers, telling them they “have a right to appear next to content that they think fits with their brand.” But whatever goodwill he might have generated then evaporated last week with his lawsuit. “We tried peace for 2 years, now it’s war,” he said in announcing the lawsuit.

Meanwhile, Musk’s behavior gets worse. Just last week, the CCDH, freed from the financial burden of defending itself against his lawsuit, reported that his “false or misleading claims about the U.S. elections” have been viewed nearly 1.2 billion times on X, “with no fact checks” such as the “community notes” that often debunk disinformation from other accounts.

Why would any advertisers hoping to attract and keep customers want their ads to be seen on a platform that has become a source of informational sewage? To ask the question is to answer it.

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iPic movie theater chain files for bankruptcy

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iPic movie theater chain files for bankruptcy

The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.

The Boca Raton, Fla.-based company has 13 locations across the U.S., including in Pasadena and Westwood, according to a Feb. 25 filing in U.S. Bankruptcy Court in the Southern District of Florida, West Palm Beach division.

As part of the bankruptcy process, the Pasadena and Westwood theaters will be permanently closed, according to WARN Act notices filed with the state of California’s Employment Development Department.

The company came to its conclusion after “exploring a range of possible alternatives,” iPic Chief Executive Patrick Quinn said in a statement.

“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.

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The company will keep its current management to maintain day-to-day operations while it goes through the bankruptcy process, iPic said in the statement. The last day of employment for workers in its Pasadena and Westwood locations is April 28, according to a state WARN Act notice. The chain has 1,300 full- and part-time employees, with 193 workers in California.

The theatrical business, including the exhibition industry, still has not recovered from the pandemic’s effect on consumer behavior. Last year, overall box office revenue in the U.S. and Canada totaled about $8.8 billion, up just 1.6% compared with 2024. Even more troubling is that industry revenue in 2025 was down 22.1% compared with pre-pandemic 2019’s totals.

IPic noted those trends in its bankruptcy filing, describing the changes in consumer behavior as “lasting” and blaming the rise of streaming for “fundamentally” altering the movie theater business.

“These industry shifts have directly reduced box office revenues and related ancillary revenues, including food and beverage sales,” the company stated in its bankruptcy filing.

IPic also attributed its decision to rising rents and labor costs.

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The company estimated it owed about $141,000 in taxes and about $2.7 million in total unsecured claims. The company’s assets were valued at about $155.3 million, the majority of which coming from theater equipment and furniture. Its liabilities totaled $113.9 million.

The chain had previously filed for bankruptcy protection in 2019.

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Startup Varda Space Industries snags former Mattel plant in El Segundo

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Startup Varda Space Industries snags former Mattel plant in El Segundo

In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.

The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.

Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.

Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.

Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.

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(Varda Space Industries)

Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.

Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.

Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.

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Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.

It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.

Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.

For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.

The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.

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“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.

As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.

Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.

Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.

Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.

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In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.

“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.

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How Iran War Is Threatening Global Oil and Gas Supplies

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How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

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Note: Times shown are in Iran Standard Time. Some ships in the region transmit false positions and others sometimes stop broadcasting their locations, and may not be reflected in the animation. Ships with sparse location data are shown in a lighter shade. Source: Kpler and Spire.

Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.

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On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.

“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”

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Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.

International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.

A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.

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Where ships and energy facilities have been damaged

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Note: Damage as of 2 p.m. Eastern time Tuesday. Source: Kpler, Kuwait National Petroleum Company, Saudi Arabian Ministry of Energy, Planet Labs, QatarEnergy, United Kingdom Maritime Trade Operations and Vanguard Tech.

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A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.

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Facilities at Ras Tanura oil refinery in Saudi Arabia were on fire on Monday after two Iranian drones were intercepted, according to Saudi Arabia’s Ministry of Energy, causing fragments to fall. Vantor

The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.

Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.

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On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.

In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.

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Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.

The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.

The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.

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Where tankers moving through the Strait have traveled

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Note: Tanker paths are since Jan. 1 and include all tankers and gas carriers. Source: Kpler and Spire.

In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.

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Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.

Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.

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