Texas Attorney General Ken Paxton filed a lawsuit Monday against Democrat fundraising platform ActBlue, alleging widespread donor fraud and seeking more than $1 million in damages as congressional Republicans ramp up a parallel investigation into the organization.
The suit, filed in Tarrant County Court, points to a New York Times report on ActBlue that prompted Republican committee chairmen to say the platform made misleading statements about its fraud prevention practices, according to the New York Post on Monday.
"Among other misrepresentations, despite knowing — and representing to regulators — that resuming its acceptance of gift cards would open the door to election influence 'from high-risk/sanctioned countries' and enable foreign nationals and other ineligible persons to make unlawful contributions to federal and state candidates, ActBlue went back to accepting them," the 30-page filing stated.
Paxton investigator Rock Robinson wrote in the complaint that the actions were deliberate.
"This was not an oversight," Robinson wrote. "It was a continuation of ActBlue's long-standing pattern and practice of tolerating rampant donor fraud on its platform so long as the fraud stayed below the radar of regulators."
The filing also stated that ActBlue continued accepting prepaid debit cards, which it described as posing an even greater risk of unlawful contributions than cash.
"Indeed, despite further knowing that domestic prepaid debit cards, like gift cards, present even a greater risk of unlawful contributions than cash, ActBlue continued to accept their use as well," Robinson noted.
The lawsuit comes as House Republicans intensify their probe into ActBlue, demanding documents they say the group has failed to provide and warning of potential consequences if it does not comply.
In a letter sent Tuesday to ActBlue CEO Regina Wallace-Jones, the Republican chairmen of the House Administration, Judiciary, and Oversight committees said recent reporting raised concerns about the organization's internal practices and transparency, including "misleading statements and noncompliance with our subpoenas."
The letter was signed by Rep. Bryan Steil, R-Wis.; Rep. Jim Jordan, R-Ohio; and Rep. James Comer, R-Ky., signaling a coordinated effort among top GOP investigators.
Lawmakers cited findings that ActBlue's legal advisers warned the group it may have provided inaccurate information to Congress about how it screens donations, particularly those potentially tied to foreign sources.
Federal law prohibits foreign nationals without permanent residency from contributing to U.S. federal campaigns.
Republicans, along with President Donald Trump, have focused on ActBlue as part of a broader effort to scrutinize Democrats' online fundraising network.
Last year, Trump directed the Justice Department to examine whether the platform processed donations from those who were not U.S. citizens.
The New York Times reported that law firm Covington & Burling advised ActBlue in early 2025 that a 2023 letter signed by Wallace-Jones posed "a substantial risk" to the organization, citing inaccuracies in how it described its vetting process, though the firm did not identify specific illegal donations.
Despite the scrutiny, ActBlue has continued to raise significant sums, announcing Tuesday that it brought in $568 million in the first quarter of 2026.
The Texas lawsuit also cites more than $1.78 billion processed by ActBlue for Democratic Party campaigns and causes in 2025.
Democrats have criticized the investigation as partisan, saying Republicans are targeting ActBlue while not pursuing similar scrutiny of WinRed, the GOP's primary fundraising platform.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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