The suit claims ActBlue lied about its donor vetting policies and continued to process impermissible contributions despite representations to the contrary.
Attorney General Paxton accused the organization of allowing "dark money" and foreign donations to flow into left-wing campaigns, violating state laws prohibiting deceptive practices.
ActBlue has processed more than $16 billion in donations since its founding in 2004, primarily funding left-wing campaigns at all levels of government.
In 2023, the Texas Office of the Attorney General opened an investigation into whether ActBlue was enabling donor fraud in violation of Texas law.
The following year, Paxton sent a Petition for Rulemaking to the Federal Election Commission, detailing how suspicious actors appeared to be using the platform for straw political donations.
Amidst the state investigation and a separate Congressional inquiry, ActBlue claimed it had stopped its illegal operations.
However, recent reporting and internal OAG investigations indicate the company misrepresented its safeguards.
The New York Times reported that ActBlue’s outside counsel acknowledged the organization’s representations about donation safeguards were not true.
The OAG determined that certain safeguards are not consistently implemented, creating a substantial risk that impermissible foreign contributions may have been processed.
Investigators proved ActBlue continues to process gift card donations, despite the company’s representations that it does not.
The acceptance of gift cards and prepaid debit cards allows for fraudulent donations due to the lack of identification required.
The lawsuit alleges these misrepresentations could lead to entities utilizing ActBlue’s services to violate state and federal election laws.