The article discusses the ongoing legal actions involving X, a social media platform, and several major advertisers like Unilever, Mars, and CVS. Despite the 2024 figures being unaudited, the 2023 numbers did not comply with GAAP standards. A group boycott by competing advertisers over issues on the platform has led to these brands facing potential lawsuits. Unilever's decision to resume advertising was made to extricate itself from the lawsuit, which highlights the pressure on brands to maintain their presence on X amidst threats of legal action and business implications, particularly given Elon Musk's influence in broader business policies.
The 2024 figures weren't audited, but the 2023 figures were and none of them would qualify for generally accepted accounting principles, also known as the GAAP standard.
Unilever agreed to resume advertising on X to get its name removed from the lawsuit, which highlights the pressures advertisers face regarding ad placement.
X is now directly threatening that advertisers will be added to the action if they refuse to resume their ad spend, raising concerns about tangible business impacts.
With Elon Musk influencing government policy, the implications of not advertising on X could impact business relationships and partnerships for many brands.
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