US judge dismisses X's lawsuit challenging New York's hate speech disclosure law

A US District Court judge has thrown out a lawsuit filed by Elon Musk's social media platform X, which aimed to overturn a New York state law demanding transparency in how companies handle hate speech, extremism, and disinformation.

US District Judge John Cronan in Manhattan rejected X's central argument that the "Stop Hiding Hate Act" violated the First Amendment of the US Constitution. X contended that the law would force it to disclose "highly sensitive and controversial speech" and expose the company to significant legal risks and fines. However, Judge Cronan found that requiring X to report "purely factual and uncontroversial information" about its content moderation practices was reasonably linked to New York's objective of enabling users to make informed decisions about social media platforms.

"Businesses always exercise their discretion, judgment, and opinions when deciding what goods or services to offer," Judge Cronan wrote in his decision, drawing an analogy to fast-food chains disclosing calorie information. "Burger King chooses to generally offer higher-calorie items than, say, Sweetgreen, but the disclosure of calorie information remains purely factual. So too here."

The dismissal is "with prejudice," meaning X cannot refile the lawsuit. The law, signed by Governor Kathy Hochul in December 2024, applies to social media companies with at least $100 million in annual revenue. It requires them to disclose their methods for eliminating hate on their platforms and report on their progress. Failure to comply can result in civil fines of up to $15,000 per violation per day. The legislation was developed with input from the Anti-Defamation League.

New York Attorney General Letitia James's office defended the law, stating it helps consumers understand social media platforms without restricting the companies' ability to express themselves or exercise judgment in content moderation. This ruling comes after Musk, who acquired Twitter in 2022 for $44 billion, dismantled the platform's content moderation policies, aligning with his self-proclaimed stance as a "free speech absolutist."

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Businesses always exercise their discretion, judgment, and opinions when deciding what goods or services to offer. Burger King chooses to generally offer higher-calorie items than, say, Sweetgreen, but the disclosure of calorie information remains purely factual. So too here.