Elon Musk owned social media company, X (formerly Twitter), has agreed to pay $10 million to settle a lawsuit brought by former U.S. President Donald Trump, according to a report by The Wall Street Journal. The lawsuit, which originated from the period when Twitter was still owned by Jack Dorsey, challenged the platform’s decision to ban Trump in the aftermath of the January 6, 2021, U.S. Capitol riot.
The legal battle was centered around Trump’s permanent suspension from Twitter following accusations that his posts incited violence. The lawsuit, filed during Twitter’s previous ownership, alleged that the ban was a politically motivated decision that violated free speech rights and biased content moderation policies.
The settlement comes amid a strengthening political and business relationship between Musk and Trump. Since acquiring Twitter in late 2022, Musk has repeatedly voiced support for free speech absolutism, reinstating multiple banned accounts, including Trump’s.
Despite being reinstated, Trump remained inactive on the platform for nearly a year, focusing instead on Truth Social, the alternative social media network he launched after his Twitter ban. However, Musk’s financial backing of Trump’s 2024 presidential campaign—estimated at over $250 million—has strengthened their association.
Earlier this week, Musk and Trump appeared together at a joint press briefing from the Oval Office, further solidifying speculation about their close ties. Musk, who has been increasingly vocal about U.S. politics and regulatory policies, has hinted at playing a larger role in shaping the digital landscape for political discourse.
According to sources familiar with the matter, Trump’s legal team initially considered dropping the lawsuit against X due to his positive relationship with Musk. However, despite the alliance, the former president decided to move forward with the settlement negotiations, ultimately reaching an agreement with X in February 2025.
Legal experts suggest that Trump’s decision to proceed with the settlement was strategic, as it allows him to recoup financial damages from his de-platforming while avoiding a prolonged legal battle. Furthermore, the settlement does not require X to admit wrongdoing, a detail that aligns with Musk’s free speech advocacy stance.
X is not the only social media company to settle a lawsuit related to Trump’s de-platforming. In January 2025, Meta Platforms (formerly Facebook) agreed to pay $25 million to resolve a related case concerning Trump’s ban from Facebook and Instagram.
Meta, like Twitter, had justified the ban by citing policy violations linked to Trump’s statements leading up to the Capitol riot. However, following Musk’s acquisition of Twitter and the changing political climate, Meta also reinstated Trump’s accounts, albeit with certain content restrictions.
For X, settling the lawsuit signals an effort to move past its controversial history under previous leadership and align with Musk’s vision of an unrestricted digital town square. The financial cost of $10 million is relatively minor compared to the company’s overall valuation, and it removes a potential legal hurdle that could have complicated X’s broader mission of platform neutrality.
Since Musk’s takeover, X has undergone significant transformations, including mass layoffs, a revamp of its content moderation policies, and a push toward subscription-based revenue models. By settling with Trump, Musk may be positioning X as a politically neutral platform, further appealing to conservative audiences who have criticized past censorship practices.
Trump’s decision to settle with X also aligns with his 2024 presidential campaign strategy, where social media influence plays a critical role. With access to Twitter, Facebook, and Instagram restored, Trump can directly engage with voters across mainstream platforms, increasing his reach beyond Truth Social.
As Trump continues his campaign, the settlement funds could also provide additional resources to counter political rivals and fund digital advertising efforts. The lawsuit settlement serves as a symbolic victory, reinforcing Trump’s narrative that he was unfairly censored by big tech companies.
The $10 million settlement between X and Trump marks a significant moment in the evolving relationship between tech giants and political figures. While Musk’s pro-free speech stance played a role in Trump’s account reinstatement, the settlement indicates that legal and financial considerations still influence decisions at the highest levels of social media governance.
As the 2024 U.S. presidential election approaches, social media platforms, including X and Meta, will continue to play a critical role in political discourse, with content moderation, censorship policies, and free speech remaining hotly debated topics.