Austin News

AUSTIN – Texas Attorney General Ken Paxton has launched an investigation into the progressive "media watchdog" Media Matters for America following accusations of potential fraudulent activity in an alleged smear campaign against X Corp., formerly known as Twitter.

Paxton's investigation comes in the aftermath of a lawsuit filed by X Corp., formerly known as Twitter, against Media Matters in the U.S. District Court for the Northern District of Texas Fort Worth Division. The lawsuit accuses Media Matters of intentionally harming X Corp.'s advertising business by orchestrating a deceptive campaign that portrayed the platform as a center for "white nationalist and anti-Semitic conspiracy theories."

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

X Corp. may lose $75 million in revenue by year’s end as a result of advertisers withdrawing their business from the platform. 

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 in its campaign against X Corp.

Expressing deep concern about the allegations, Paxton emphasized the importance of scrutinizing organizations that might limit freedom of expression by manipulating information in the public domain. In a press release, he stated, "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."

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

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

The lawsuit by X Corp. claims Media Matters' smear campaign is part of a prolonged attack of the 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.

Musk, chairman of X Corp. and CEO of Tesla, employs 20,000 people at Tesla's Gigafactory in Austin. It is the second-biggest factory by size in the U.S.