The decision means Musk may be forced to cooperate with federal investigators who are probing X, the company formerly known as Twitter, over business decisions that regulators fear may have jeopardized user security or privacy.
The 11-page order by US Magistrate Judge Thomas Hixon denies X's attempt to invalidate a longtime privacy settlement with the FTC that forms the basis for the investigation. Hixon said the US District Court for the Northern District of California lacks the authority to grant X's request to overturn the independent agency's administrative order.
The privacy settlement at stake is central to the US government's scrutiny of X. Questions about whether the company has complied with the 2011 order arose in a significant way in 2022. That's when Twitter paid $150 million in an update to the settlement, resolving fresh allegations that it harmed users when it used personal information provided for account authentication purposes for advertising purposes instead.
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