Texas lawsuit targets ActBlue over claims of foreign influence and 'dark money' donations

Texas Attorney General Ken Paxton filed a lawsuit against ActBlue on Monday, alleging the prominent Democratic fundraising platform deceived the public about safeguards intended to prevent fraudulent and foreign campaign contributions.

Paxton sues ActBlue

The lawsuit claims ActBlue, which has processed more than $16 billion for left-wing candidates since 2004, violated state consumer protection laws by misrepresenting its donor vetting processes. Paxton alleges the platform’s lack of security allows for "straw" donations and "dark money" to influence American elections.

What they're saying:

"ActBlue lied to Congress and to the American people, and I will ensure justice is served," Paxton said in a statement. "It has blatantly ignored state law that prohibits deceptive practices, and it must pay for its illegal conduct. Fair elections are the foundation of our democracy, and I will work to ensure no illegal campaign donation flies under the radar."

The legal action follows a 2023 investigation by the Attorney General’s Office into whether the platform enabled donor fraud. Paxton’s office contends that despite ActBlue’s public assurances that it had tightened security, investigators were able to make donations using gift cards, a method the platform reportedly claimed to have banned.

The use of gift cards and prepaid debit cards is a central point of the state's argument, as these methods often bypass the identification requirements necessary to verify a donor's citizenship or identity.

The other side:

ActBlue dismissed the lawsuit as a politically motivated attack in a statement provided to FOX Local. De'Andra Roberts-LaBoo, a spokesperson for the organization, characterized the filing as an attempt to divert attention from Paxton’s own long-standing legal challenges ahead of upcoming runoff elections.

"This is a thinly veiled attempt to distract from Ken Paxton’s numerous legal and ethical issues ahead of next month’s runoff," Roberts-LaBoo said. "If he and his Republican allies actually cared about donor fraud, they would work to strengthen security standards across the board, including within their own operations, rather than targeting ActBlue. Our platform has done more than any other, regardless of party, to prevent improper donations and protect donors. Full stop."

Dig deeper:

The lawsuit comes amid heightened scrutiny of digital fundraising platforms. Earlier this year, Paxton petitioned the Federal Election Commission to implement stricter rules regarding suspicious donation patterns.

State investigators claim that recent internal findings and third-party reporting suggest ActBlue’s safeguards are "not consistently implemented," creating what they described as a "substantial risk" for impermissible foreign contributions.

Paxton is seeking a permanent injunction against the platform and civil penalties for the alleged violations of the Texas Deceptive Trade Practices Act.

The lawsuit states, "Texas claims entitlement to non-monetary relief, as well as monetary relief in an amount greater than $1,000,000 including civil penalties, reasonable attorneys’ fees, litigation expenses, and costs."