Business
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
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.
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.
“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.
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.
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.
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.
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.
Business
How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
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