Democratic fundraising platform ActBlue has filed a federal lawsuit against Texas Attorney General Ken Paxton (R), accusing him of abusing his office to target the organization for political reasons and violating its First and Fourteenth Amendment rights.
The complaint alleges AG Paxton launched an undercover investigation into ActBlue immediately after a major fundraising surge by his Democratic Senate Opponent, James Talarico, drew national attention. According to the filing, Paxton's office later pursued legal action based on a claim that his own investigators had already disproven.
"Ken Paxton has spent more than two years using the power of his office to investigate, harass, and sue ActBlue," said Lawrence Oliver, ActBlue's chief legal officer. "That is not law enforcement. It is retaliation against constitutionally protected political speech."
At the center of the lawsuit is an allegation that Paxton's office falsely claimed ActBlue allowed fraudulent transactions using prepaid gift cards. The complaint states that investigators attempted to use such cards three times, and all transactions were automatically rejected under ActBlue's anti-fraud systems, contradicting the basis of the state's legal action.
ActBlue also argued that Paxton selectively targeted the platform while ignoring similar or more serious issues involving WinRed, the Republican counterpart. The filing notes that WinRed has faced documented refund rates as high as 20%, yet has not been subject to comparable scrutiny.
The lawsuit further highlights scrutiny around Paxton's own campaign finances, pointing to multiple inquiries by the Federal Election Commission into nearly $883,000 in potentially illegal donations tied to his Senate Campaign.
ActBlue's legal challenge frames Paxton's actions as "viewpoint discrimination," arguing that his public statements emphasized the platform's role in supporting Democratic candidates rather than any neutral consumer protection concerns.
The timing of the investigation is the central claim in the lawsuit. ActBlue notes that Paxton's office initiated undercover activity on February 18, 2026, the same day Talarico announced raising $2.5 million in 24 hours, most of it through ActBlue. Paxton later filed a state lawsuit on April 20, shortly after reports highlighted Talarico's broader fundraising strength.
The lawsuit asks a federal judge to declare Paxton's investigation unconstitutional and to block any further enforcement actions against the platform.
