A federal judge has blocked Texas Attorney General Ken Paxton from moving forward with a lawsuit targeting ActBlue, the Democrat Party’s dominant online fundraising platform, ruling that the case likely violates the organization’s First Amendment rights.
According to The Hill, U.S. District Judge Richard G. Stearns issued a preliminary injunction Thursday preventing Paxton from continuing to litigate the case while ActBlue’s constitutional challenge proceeds in federal court.
Stearns found that ActBlue is likely to succeed on its claim that Paxton’s lawsuit was politically motivated retaliation rather than a legitimate consumer protection effort.
“The lawsuit in Texas is undoubtedly an adverse action,” Stearns wrote in his ruling. The judge concluded that the evidence showed the case was filed “in retaliation” for ActBlue’s fundraising efforts on behalf of Texas state Rep. James Talarico, a Democrat who is challenging Paxton in the race for the U.S. Senate.
Paxton launched an investigation into ActBlue in 2023, alleging the platform failed to adequately prevent fraudulent donations. In April, his office sought a court order in Texas that would have barred ActBlue from accepting donations made through gift cards and prepaid debit cards. The attorney general argued that the fundraising platform had misled Congress and the public about its donor verification procedures. (RELATED: ActBlue CEO Pleads The Fifth 22 Times During Congressional Hearing)
ActBlue responded by filing a separate federal lawsuit, arguing that Paxton’s case was driven by partisan politics and contained what it described as “false and inflammatory allegations.” The organization also pointed to the timing of the investigation, noting that investigators were reportedly sent to build a case against the platform just one day after Talarico announced a $2 million fundraising haul.
In granting the injunction, Judge Stearns rejected Paxton’s attempt to have ActBlue’s lawsuit dismissed. He also barred Paxton and his office from filing any new legal claims based on the same underlying conduct while the federal case remains pending.
ActBlue celebrated the ruling as a victory for free speech and political participation.
“This ruling affirms that political fundraising is core to free speech and protected by the First Amendment,” ActBlue Chief Legal Officer Lawrence Oliver said in a statement. “The Texas Attorney General attempted to silence everyday Americans who want to donate to candidates and causes they believe in. The court clearly chose the Constitution over partisan politics.”
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