Ripple CTO Emeritus Defends Elon Musk’s X Amid Latest Lawsuit

Ripple CTO Emeritus, David Schwartz, has commented on the situation amid the recent lawsuit around Elon Musk’s X. His comments come following the recent court victory of X Corp.’s argument that recommendation algorithms are not responsible for user-generated content.

Ripple CTO Emeritus Remarks On X Lawsuit

The comments were made after a federal court in Texas ruled that Section 230 immunizes X Corp. from liability stemming from posts to and dissemination on its platform in Taddeo-Waite vs. X Corp.

The lawsuit alleges that X failed to remove harmful content and boosted the plaintiff’s content using their algorithms. In addition, it alleged that the platform downranked the plaintiff’s own posts.

In a comment on X, Ripple’s Schwartz stated that “the theory that amplifying or recommending speech makes you liable for its contents is a brand new theory of liability for speech that is prohibited by the First Amendment’s prohibition on any new theories of liability for speech.”

Here, Ripple CTO Emeritus defended the case focused on allegations by Taddeo-Waite. The plaintiff contended that it should be liable for allegedly promoting the graphic post of an anonymous user through its recommendation system, a Congress candidate. However, the platform’s actions continue to be covered by Section 230 of the Communications Decency Act, said Magistrate Judge Ray.

In judging the case, the court said that Section “230 clearly bars Taddeo-Waite’s claims against X.” The court also disagreed that the algorithmic amplification altered the legal analysis. It made the decision since the recommendations that X provided did not add to the substance of X’s original post.

In a separate news, Elon Musk’s SpaceX filed for an IPO. Moreover, the latest feat for X adds to the positive sentiment around Musk-led projects.

Allegations In Lawsuit Against X

The opinion also states that the plaintiff did not provide how X’s algorithms “encouraged or contributed to the post’s message.” It only claiming that algorithms on X promoted the spread of the post upon publication.

The algorithmic recommendations are similar to traditional editorial choices of publishers in determining which articles are published with higher visibility, the court said.

The lawsuit against Elon Musk’s X further alleged that, despite being a paid member of the site, X blocked Taddeo-Waite’s posts. The plaintiff’s claim was presented as a breach of contract claim. However, the court held that the Section 230 immunity also applied.

The decision was filed as a magistrate judge’s report and recommendation in April 2026 before the U.S. District Court for the Northern District of Texas. Now, Judge Reed O’Connor’s review on the ruling is pending.

On the country, Elon Musk lost the legal battle against OpenAI. The lawsuit demanded $134 billion in compensation, which the court denied.

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