ActBlue, the leading online fundraising platform for Democratic candidates and causes, filed a lawsuit Friday in federal court in Boston against Texas Attorney General Ken Paxton. The suit seeks to halt Paxton's ongoing investigation and a related state court case accusing the platform of facilitating fraudulent and foreign donations.

The plaintiffs include ActBlue LLC, ActBlue Civics Inc., ATS Inc., and ActBlue Charities Inc., all Massachusetts-based entities that have collectively raised nearly $19 billion since 2004 to support progressive campaigns and organizations. ActBlue alleges Paxton's actions violate its First and Fourteenth Amendment rights by retaliating against protected political speech and association. The complaint claims the Texas attorney general targeted the platform after it helped Paxton's Democratic U.S. Senate opponent, state Rep. James Talarico, raise over $2 million in 24 hours.

Paxton launched an investigation into ActBlue in December 2023 over potential donor fraud under Texas law. On April 20, 2026, he filed a civil enforcement action in Tarrant County District Court, accusing ActBlue of violating the Texas Deceptive Trade Practices Act. The state petition alleges that ActBlue misled Congress, donors, and the public by claiming robust vetting processes while secretly resuming acceptance of gift cards and prepaid debit cards, methods that obscure donor identities and enable illegal foreign contributions and straw donations.

Paxton's office cited internal ActBlue documents, congressional probes, and its own investigators' successful test donations using gift cards to Democratic recipients in February 2026. The suit seeks injunctions against such payment methods, civil penalties up to $10,000 per violation, and attorney fees.

ActBlue counters that Paxton's investigators' attempts with an American Express gift card were rejected three times by its automated fraud tools, and accuses him of omitting this from the Texas filing. Chief Legal Officer Lawrence Oliver called the probe 'retaliation against constitutionally protected political speech,' noting Paxton's history of targeting Democratic groups like Media Matters and JOLT Initiative, where courts found bad faith.

Paxton responded defiantly on social media late Friday: 'ActBlue is trying to take me down. I sued the fundraising platform for deceiving Americans by lying about its donation processes that allow fraudulent and foreign donations. I will hold those who break the law accountable.' He has previously stated that ActBlue's practices undermine election integrity by funneling 'foreign donations and dark money' into campaigns.

The dispute occurs amid broader scrutiny of ActBlue. House Republicans released reports detailing illicit foreign donations, and in 2025, President Donald Trump directed the Justice Department to probe the platform alongside Republican counterpart WinRed. Paxton faces a May 26 runoff against Sen. John Cornyn for the GOP Senate nomination, with Talarico as the Democratic nominee.

ActBlue raised nearly $1.8 billion in small-dollar donations in 2025 alone. The federal case invokes 42 U.S.C. § 1983 and demands dismissal of Paxton's state action with prejudice.