X Corp, the social media company owned by Elon Musk, has filed a federal lawsuit against New York State Attorney General Letitia James, challenging a new law requiring platforms to disclose how they monitor and manage hate speech, extremism, and other harmful content.
In a complaint filed Tuesday in a Manhattan federal court, X argues that the law, officially known as the Stop Hiding Hate Act, violates the First Amendment of the U.S. Constitution by compelling companies to reveal their policies on “highly sensitive and controversial speech” that is protected by law but disfavoured by the state.
Passed in December 2024, the law mandates that social media companies clearly outline their terms of service and report enforcement practices to the attorney general’s office. Platforms that fail to comply could face civil fines of up to $15,000 per violation per day.
New York Governor Kathy Hochul, at the time of the bill’s signing, said it aimed to bring greater transparency and accountability to tech companies.
“We are taking bold action to hold companies accountable and give consumers the transparency and security they need and deserve,” she said.
X’s lawsuit seeks an injunction to block the law’s enforcement.
“Determining what speech is acceptable on social media engenders considerable debate,” the company said in the filing. “This is not a role that the government may play.”
The complaint also highlighted comments from Democratic legislators who sponsored the law, Senator Brad Hoylman-Sigal and Assembly Member Grace Lee, accusing X and Musk of having a “disturbing record” on content moderation that threatens democratic norms. The law was drafted with input from the Anti-Defamation League.
X Corp compared the New York law to a similar 2023 statute passed in California, parts of which were later blocked by a federal appeals court on First Amendment grounds. California agreed in a February 2025 settlement not to enforce the measure’s disclosure rules.
This lawsuit is the latest in a series of legal battles Musk’s company has launched against U.S. states. In April, X filed a suit against Minnesota over legislation banning politically motivated deepfakes, also citing free speech concerns.
Musk, who has described himself as a “free speech absolutist,” has faced criticism for inconsistent content moderation and for suspending accounts that challenge his political views. Ahead of the 2024 presidential election, watchdog groups and media outlets reported that X selectively suppressed Democratic voices while Musk supported then-candidate Donald Trump.
In 2023, the Center for Countering Digital Hate accused the platform of failing to act on 99 percent of hate-filled posts by Twitter Blue subscribers. That report, along with findings from Media Matters, led several major advertisers to pause spending on the platform—prompting X Corp to respond with lawsuits against the groups.
With input from Al Jazeera and news agencies
