Ft Worth Times

FORT WORTH – Texas Attorney General Ken Paxton has launched an investigation into the progressive "media watchdog" Media Matters for America following a federal lawsuit filed in Fort Worth, which accuses the organization of fraudulently manipulating data in a smear campaign against X, the social media platform formerly known as Twitter.

A lawsuit filed by X. Corp accuses Media Matters of intentionally harming the company's advertising business by orchestrating a deceptive smear campaign that portrayed the platform as a center for "white nationalist and anti-Semitic conspiracy theories." Paxton's inquiry, which cites the Texas Business Organizations Code and the Deceptive Trade Practices Act, is prompted by concerns that Media Matters, described as a radical anti-free speech organization, may have fraudulently manipulated data as part of its campaign.

The Attorney General expressed his concern about the allegations and emphasized the importance of scrutinizing organizations that might 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," Paxton said in a press release.

Represented by Paxton allies, former Texas Solicitor General Judd Stone, and former assistant attorney general Christopher Hilton, X Corp.'s lawsuit argues that Media Matters intentionally sought to harm X Corp.'s revenues by persuading major advertisers to withdraw their business from the platform. 

In its legal action, the Office of the Attorney General (OAG) emphasized the state's dedication to rigorously enforcing laws targeting fraudulent practices by nonprofits operating within or influencing Texas. The OAG's investigation aims to thoroughly examine the precise nature of the alleged fraudulent activities and assess potential repercussions on public discourse.

Media Matters, known for its alignment with Bill and Hillary Clinton and promotion of leftist narratives, faces legal scrutiny as Texas authorities examine the credibility of the allegations that it manipulated images and algorithms, persuading major advertisers like Apple, Comcast, NBCUniversal, and IBM to withdraw ads from the platform based on false information.

X. Corp. claims that this campaign by Media Matters is part of a prolonged attack on the X platform following Elon Musk's $44 billion purchase of Twitter in 2022. Musk's legal team suggests that the case could compel Media Matters' to reveal its reporting process and funding sources during discovery.

The social media giant has lost about half of its advertising revenue and may lose $75 million in revenue by year’s end as a result of advertisers withdrawing their business from the platform.

Media Matters has yet to publicly respond to the announcement of the investigation.