AG Paxton Blocked from Suing Democratic Donor Platform ActBlue
Attorney General Ken Paxton must drop his lawsuit against ActBlue, the political donations platform primarily used by Democratic candidates, a Boston federal judge ruled Thursday in a decision that cited the Texas Republican's “well-known history of filing retaliatory lawsuits.”
ActBlue sued Paxton in early May, alleging that the series of investigations and litigation he had initiated against the company was politically motivated.
District Judge Richard Gaylore Stearns agreed, alluding to the fact that Paxton resumed an investigation into ActBlue the day after Democratic state Rep. James Talarico announced he had raised $2.5 million within 24 hours of appearing on late night host Stephen Colbert's show. Paxton and Talarico, at the time vying for their party's respective U.S. Senate nominations, are now facing off in the November general election.
“The truth is plain and captured in Paxton’s own declarations: The lawsuit was filed in retaliation for (and in an attempt to suppress) ActBlue’s efforts to fund Talarico’s campaign,” Stearns wrote.
Paxton filed a lawsuit against ActBlue in late April, claiming the platform allows improper donations from people outside the United States and those who have already hit federal donor limits. His pursuit of ActBlue dates back to December 2023, when his office opened an investigation into the platform. The agency later sent a letter to the Federal Elections Commission claiming it had uncovered evidence that “bad actors can illegally interfere in American elections by disguising political donations” via ActBlue.
Under Thursday’s ruling, Paxton cannot continue to litigate its state court case against ActBlue, or bring any other related state lawsuits against the company.
The ruling comes after a Wednesday hearing of the U.S. House Administration Committee focused on "preventing fraudulent donations." As Republicans on the panel probed ActBlue's CEO, Democrats unsuccessfully tried to subpoena Paxton for ignoring their queries about similar allegations lodged against WinRed, the GOP's equivalent platform. The motion to order Paxton before the panel failed on a party-line vote.
Background: ActBlue is the main platform used by Democratic candidates and causes. Since its founding, more than 28 million people have donated through ActBlue, which processed $1.78 billion last year alone.
The group began facing pressure from Republican members of Congress in 2023, which Paxton followed by opening an investigation into Texas-based donations. In August 2024, Paxton claimed victory, saying ActBlue had agreed to start requiring CVV codes on credit card donations.
In April 2025, Trump ordered the Justice Department to investigate ActBlue, heightening fears among Democrats about the political targeting of the infrastructure that allows them to fundraise. Paxton also involved ActBlue in his investigation of Texas Democratic House members who left the state in the summer 2025 to protest mid-decade redistricting.
The compounding investigations have led to internal turmoil at ActBlue, The New York Times reported. Earlier this month, the newspaper reported that ActBlue lawyers raised concerns that the company’s systems were not as robust as top executives had told congressional Republicans that they were.
What Paxton is saying: Citing that recent reporting, Paxton filed his lawsuit on April 20, saying that ActBlue “lied to Congress and to the American people.”
“It has blatantly ignored state law that prohibits deceptive practices, and it must pay for its illegal conduct,” Paxton said. “Fair elections are the foundation of our democracy, and I will work to ensure no illegal campaign donation flies under the radar.”
He is suing in state court under the Deceptive Trade Practices Act, a consumer protection statute he has deployed repeatedly over the last year to go after left-leaning organizations. The civil penalties of up to $10,000 per violation could be significant if the judge were to rule against the company.
Stearns expressed skepticism that Paxton’s office was actually motivated by the New York Times article, rather than Talarico’s fundraising haul, writing in the ruling that lawyers for the state admitted they had not fact-checked the newspaper's claims.
Paxton touted this litigation on several conservative podcasts, in which he “did not hesitate in drawing a connection between the lawsuit and his candidacy for Senate,” Stearns wrote.
Paxton’s lawyers argued that federal courts generally should not intervene in state cases, which Stearns agreed with. But in this case, he wrote, “the evidence of bad faith is sufficiently overwhelming to qualify this as one of the rare cases where the exception should apply.”
What ActBlue is saying: ActBlue’s lawsuit says Paxton is violating the company’s First and 14th Amendment rights, and alleges he misinformed the court about the results of his office’s investigation. Paxton’s investigators’ attempts to use gift cards were repeatedly denied, the company said, despite claims in the lawsuit to the contrary.
In a press release, the company criticized Paxton for framing his investigation in “partisan, not consumer protection, terms,” pointing to his comments about the company’s support for “liberal Democrats” and “left-wing campaigns.”
"Ken Paxton has spent more than two years using the power of his office to investigate, harass, and sue ActBlue,” Oliver said in a statement. “This is not law enforcement. It is retaliation against constitutionally protected speech and association, and it is exactly what the First Amendment forbids.”
Disclosure: New York Times has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
This article first appeared on The Texas Tribune.
