Attorney General Ken Paxton has initiated an investigation into progressive “media watchdog” Media Matters for America over allegations of potential fraudulent activity.
The Office of the Attorney General (OAG) cites the Texas Business Organizations Code and the Deceptive Trade Practices Act as the legal basis for this inquiry.
The investigation is fueled by concerns that Media Matters, characterized as a radical anti-free speech organization, may have engaged in fraudulent manipulation of data on X.com, formerly known as Twitter.
Paxton’s legal action comes after X Corp filed a lawsuit against Media Matters, alleging intentional harm to its advertising business.
The lawsuit, lodged in the United States District Court for the Northern District of Texas Fort Worth Division, accuses Media Matters of orchestrating a deceptive campaign to portray X Corp as a hub for "white nationalist and anti-Semitic conspiracy theories.”
Paxton expressed deep unease about the allegations and underscored the importance of scrutinizing organizations that may attempt to limit freedom of expression by manipulating information in the public domain.
“We are examining the issue closely to ensure that the public has not been deceived by the schemes of radical left-wing organizations who would like nothing more than to limit freedom by reducing participation in the public square,” Attorney General Ken Paxton said in a press release.
In bringing the action, the OAG has emphasized the state's commitment to robustly enforcing laws against nonprofits engaging in fraudulent acts within or affecting Texas.
The OAG's inquiry is expected to delve into the specific nature of the alleged fraudulent activities and their potential impact on public discourse.
As the investigation unfolds, it raises questions about the role of such organizations and their adherence to ethical standards in the digital age.
Media Matters has not yet publicly responded to the announcement of the investigation.
Media Matters, a group closely aligned with Hillary and Bill Clinton and known for its advocacy for leftist narratives in journalism, now finds itself under the legal spotlight as Texas authorities explore the veracity of the allegations.
X Corp alleges that Media Matters manipulated images and algorithms, leading major advertisers like Apple, Comcast, NBCUniversal, and IBM to withdraw ads from the platform based on false information.
The legal battle unfolds amid accusations of a prolonged attack on the X platform by Media Matters following Elon Musk's $44 billion purchase of Twitter in 2022, and Musk's legal team suggests that the case could reveal Media Matters' reporting process and funding sources during discovery.
The legal team for X Corp includes Paxton allies Judd Stone and former assistant attorney general, Christopher Hilton.
Stone was formerly Texas’s Solicitor General, the state’s top appellate attorney, and Hilton was previously an assistant attorney general.
The allegation is that Media Matters intentionally sought to harm X Corp’s business.
The group also included imagery that led several major advertisers to withdraw from X Corp.
“As X owner Elon Musk continues his descent into white nationalist and antisemitic conspiracy theories, his social media platform has been placing ads for major brands like Apple, Bravo (NBCUniversal), IBM, Oracle, and Xfinity (Comcast) next to content that touts Adolf Hitler and his Nazi Party,” Media Matters said in its alleged expose.
Following the actions undertaken by Media Matters, X is expected to lose $75 million by year’s end.
The move came less than a year after Musk opened Twitter’s email servers and other communication mechanisms to reporters who revealed a massive domestic censorship campaign in a series of stories dubbed the “Twitter Files.”
The Twitter Files unveiled a wide-ranging effort of government control over narratives that resulted in often true information being censored from the Twitter platform, and other social media platforms.
In the wake of the reporting, the censorship scheme aimed at ordinary Americans and dissenting media alike has been termed the “Censorship Industrial Complex.”
Since Musk’s actions unveiling the wide-ranging efforts to manipulate narratives online, the platform has lost about half of its advertising revenue.