Media Matters for America v. X Corp.

CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 19, 2025
Docket25-2463
StatusUnpublished

This text of Media Matters for America v. X Corp. (Media Matters for America v. X Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Media Matters for America v. X Corp., (9th Cir. 2025).

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS DEC 19 2025 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT

MEDIA MATTERS FOR AMERICA; No. 25-2463 ANGELO CARUSONE; ERIC D.C. No. HANANOKI, 3:25-cv-02397-VC Plaintiffs - Appellees, MEMORANDUM* v.

X CORP.; TWITTER INTERNATIONAL UNLIMITED COMPANY; TWITTER ASIA PACIFIC PTE, LTD.,

Defendants - Appellants.

Appeal from the United States District Court for the Northern District of California Vince Chhabria, District Judge, Presiding

Argued and Submitted November 17, 2025 San Francisco, California

Before: BOGGS, BRESS, and MENDOZA, Circuit Judges.**

Media Matters published an article claiming that X Corp.’s (“X”) content

moderation policies permitted the placement of “pro-Nazi” content next to

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. ** The Honorable Danny J. Boggs, United States Circuit Judge for the Court of Appeals, Sixth Circuit, sitting by designation. advertisements for major brands. In response, X and its foreign subsidiaries sued

Media Matters in three jurisdictions, including Ireland. After litigating for over a

year in Ireland, Media Matters brought suit in the Northern District of California,

invoking a forum selection clause in X’s terms of service. The district court entered

an anti-suit injunction that enjoined X from pursuing the Ireland litigation.

We “review[ ] the district court’s decision to grant or deny a preliminary

injunction for abuse of discretion,” but “[t]he district court’s interpretation of the

underlying legal principles . . . is subject to de novo review.” Cal. Chamber of Com.

v. Council for Educ. & Rsch. on Toxics, 29 F.4th 468, 475 (9th Cir. 2022) (quotation

marks and citation omitted). We have jurisdiction under 28 U.S.C. § 1292(a)(1), and

we vacate the injunction.

1. As an initial matter, the district court had subject matter jurisdiction based

on diversity of citizenship. See 28 U.S.C. § 1332(a). X challenges only the amount

in controversy, but its challenge fails. A court can only dismiss a case on amount-

in-controversy grounds if it “‘appear[s] to a legal certainty’” that the controversy

will not exceed $75,000 in value. Geographic Expeditions, Inc. v. Est. of Lhotka ex

rel. Lhotka, 599 F.3d 1102, 1106 (9th Cir. 2010) (quoting Crum v. Circus Circus

Enters., 231 F.3d 1129, 1131 (9th Cir. 2000)).

Here, the value of an injunction to Media Matters likely exceeds $75,000. See

Corral v. Select Portfolio Serv., Inc., 878 F.3d 770, 775 (9th Cir. 2017) (explaining

2 25-2463 that “[i]n actions seeking declaratory or injunctive relief, it is well established that

the amount in controversy is measured by the value of the object of the litigation”)

(quoting Cohn v. Petsmart, Inc., 281 F.3d 837, 840 (9th Cir. 2002)). X, if successful

in the Ireland litigation, would likely be entitled to more than $75,000 in damages.

A successful anti-suit injunction would terminate the foreign action and also prevent

Media Matters from enduring some duplicate litigation (likely producing savings

even if X re-files in the United States). X argues that since its terms of service limit

liability to $100, Media Matters’ recovery is limited to an amount less than $75,000.

But “‘the existence of a valid defense to [a] claim’ does not eliminate federal

jurisdiction.” Geographic Expeditions, 599 F.3d at 1108 (quoting St. Paul Mercury

Indem. Co. v. Red Cab Co., 303 U.S. 283, 289–90 (1938)).1

2. The parties dispute whether Media Matters has the right to enforce X’s

terms of service against X’s foreign affiliates. But we conclude that even if Media

Matters had such a right, it waived the right to exercise the forum selection clause in

X’s terms by actively litigating the Ireland case for over a year without raising the

forum selection clause in either Ireland or the Northern District of California.

1 Media Matters also meets the amount in controversy based on its claimed damages in the form of attorneys’ fees for X’s alleged violation of the forum selection clause. See, e.g., Microsoft Corp. v. Motorola, Inc., 795 F.3d 1024, 1049 (9th Cir. 2015); Copenbarger v. Morris Cerullo World Evangelism, Inc., 239 Cal. Rptr. 3d 838, 844– 46 (Cal. Ct. App. 2018).

3 25-2463 Waiver can be based on a party’s litigation conduct. See, e.g., Hill v. Xerox

Bus. Servs., LLC, 59 F.4th 457, 471 (9th Cir. 2023) (explaining that parties waive

their right to enforce an arbitration clause (a type of forum selection clause) when

they delay enforcement “by actively litigating [their] case,” such as by “answer[ing]

complaints, mov[ing] to dismiss the action, and [failing to] claim a right to

[enforcement] in any of the pleadings”) (quoting Martin v. Yasuda, 829 F.3d 1118,

1125 (9th Cir. 2016)). In this case, Media Matters had knowledge of X’s terms of

service from the beginning of the Ireland litigation (and cited them in its briefs for

other jurisdictional defenses before the Irish court), so it had all the information it

needed to defend its rights. Yet instead of invoking the forum selection clause,

Media Matters litigated in Ireland for over a year before it raised the issue for the

first time in this action. Whether Media Matters failed to raise the forum selection

clause earlier due to gamesmanship or the potential negligence of its prior counsel

is not dispositive, as the parties agreed at oral argument. See Hansen v. W.

Greyhound Ret. Plan, 859 F.2d 779, 783 (9th Cir. 1988) (“[L]ack of actual

knowledge is not dispositive—waiver may be based on constructive knowledge.”).

X has also demonstrated prejudice resulting from Media Matters’ litigation

conduct. See 13 Williston on Contracts § 39:15 (4th ed.) (“[T]he probability that a

court will find a waiver or other excuse for nonperformance increases in proportion

to the extent and unfairness of the forfeiture involved.”). In the Ireland litigation,

4 25-2463 the parties submitted hundreds of pages of affidavits and other evidence that would

have otherwise been unnecessary in the context of the underlying dispute. Media

Matters’ excessive delay in raising the forum selection clause, coupled with the

litigation already conducted in Ireland, prejudiced X.

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Related

Geographic Expeditions, Inc. v. Estate of Lhotka
599 F.3d 1102 (Ninth Circuit, 2010)
Saint Paul Mercury Indemnity Co. v. Red Cab Co.
303 U.S. 283 (Supreme Court, 1938)
E. & J. Gallo Winery v. Andina Licores S.A.
446 F.3d 984 (Ninth Circuit, 2006)
Microsoft Corporation v. Motorola Mobility
795 F.3d 1024 (Ninth Circuit, 2015)
Paige Martin v. Gary Yasuda
829 F.3d 1118 (Ninth Circuit, 2016)
Esperanza Corral v. Select Portfolio Servicing
878 F.3d 770 (Ninth Circuit, 2017)
June Newirth v. Aegis Senior Communities, LLC
931 F.3d 935 (Ninth Circuit, 2019)
Copenbarger v. Morris Cerullo World Evangelism, Inc.
239 Cal. Rptr. 3d 838 (California Court of Appeals, 5th District, 2018)
California Chamber of Commerce v. Cert
29 F.4th 468 (Ninth Circuit, 2022)
Tiffany Hill v. Xerox Business Services, LLC
59 F.4th 457 (Ninth Circuit, 2023)
Teresa Armstrong v. Michaels Stores, Inc.
59 F.4th 1011 (Ninth Circuit, 2023)

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