Texas Attorney General Ken Paxton filed a lawsuit Monday against the Democratic fundraising platform ActBlue, alleging widespread donor fraud and seeking more than $1 million in damages amid a broader Republican-led investigation into the organization’s fundraising practices.

The suit, filed in Tarrant County, accuses ActBlue of misrepresenting its fraud prevention systems and allowing the use of payment methods that could increase the risk of unlawful political contributions. It cites prior internal communications and public reporting suggesting concerns about the platform’s ability to screen donations, particularly those potentially linked to foreign sources.

According to the filing, ActBlue resumed accepting certain forms of prepaid payment methods, including gift cards and debit cards, despite warnings that such tools could be used to obscure donor identity or enable contributions from ineligible individuals. The complaint argues this created vulnerabilities that could undermine federal campaign finance laws, which prohibit foreign nationals without permanent residency from contributing to U.S. elections.

A senior investigator involved in the case described the conduct as intentional, alleging the platform maintained permissive practices as long as irregular activity remained below regulatory scrutiny.

The lawsuit also references internal concerns reportedly raised by outside legal counsel, which questioned whether ActBlue had previously provided accurate information to Congress about its donor verification procedures.

The legal action comes as congressional Republicans escalate their own investigation into the organization. House committee chairs, including Jim Jordan, James Comer, and Bryan Steil, have demanded documents from ActBlue, alleging insufficient compliance with subpoenas and raising concerns about transparency in its operations.

ActBlue, a major online fundraising platform for Democratic candidates and causes, has been a key infrastructure tool for grassroots donations. The Texas filing cites billions of dollars in transactions processed through the platform in recent years, arguing that its scale increases the importance of strict compliance controls.

Republicans, including President Donald Trump, have previously called for closer scrutiny of digital fundraising systems, pointing to ActBlue as part of a broader effort to examine political donation networks.

ActBlue has not publicly responded in detail to the latest lawsuit, but Democrats have criticized the investigations as politically motivated, arguing that comparable scrutiny has not been applied to Republican fundraising platforms.

The case is expected to continue unfolding alongside ongoing congressional inquiries and could set the stage for further legal and regulatory battles over online campaign fundraising practices.