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ActBlue Sues in Federal Court to Halt Texas AG Ken Paxton’s Donation Probe

The filing casts Paxton’s actions as unconstitutional retaliation against Democratic fundraising.

Overview

  • ActBlue, which filed in Boston on Friday, seeks a court order that blocks Ken Paxton from pursuing his Texas lawsuit and ongoing investigations.
  • Paxton’s Texas case, filed April 20, asks a state court to levy penalties and to stop ActBlue from taking donations made with gift cards or prepaid debit cards, which he says can hide a donor’s identity and enable illegal contributions.
  • Paxton rejected ActBlue’s claims, saying on social media that he sued to stop deceptive donation practices and that he will hold lawbreakers accountable.
  • ActBlue argues Paxton targeted it for political reasons, noting his investigators began undercover tests the day after Democrat James Talarico announced a rapid ActBlue‑driven fundraising haul.
  • The group says Texas investigators tried three American Express gift cards and the platform blocked all attempts, and it accuses Paxton of hiding those failed tests from the court, a fight that could affect small‑dollar donors who rely on common payment options.