Texas Attorney General Paxton Sues ActBlue Over Alleged Donation Issues

Texas Attorney General Ken Paxton announced a lawsuit against ActBlue on Monday, accusing the Democratic fundraising platform of misleading donors about its safeguards against fraudulent and foreign political contributions. Paxton stated on X that the lawsuit addresses ActBlue's donation processes, which he said allow such donations.

The lawsuit was filed in Tarrant County district court and seeks injunctions to prevent ActBlue from accepting contributions via gift cards and prepaid debit cards, as well as civil penalties, attorneys' fees, and costs.

The lawsuit is brought under the Texas Deceptive Trade Practices Act. It alleges that ActBlue marketed its services as compliant and secure while permitting payment methods that Texas says can facilitate unlawful donations. The state claims ActBlue falsely stated it had tightened donor-vetting procedures and stopped accepting certain high-risk payments, but continued to process donations that could mask donor identities.

According to the complaint, gift cards and prepaid debit cards are vulnerable to abuse due to limited identification requirements compared to traditional payment methods. The allegations have not been proven in court.

In 2024, the office petitioned the Federal Election Commission, citing suspicions of straw donations through the platform. Paxton said recent reporting and the office's investigation indicate ActBlue's public claims about compliance were inaccurate.

The lawsuit references ActBlue's statements to congressional investigators, claiming the platform said it stopped accepting gift card donations and implemented checks for impermissible contributions.

Texas alleges these statements were untrue, as investigators made donations using gift cards, including to the Democratic National Committee and Texas candidates. ' That report stated ActBlue made its fraud-prevention rules more lenient twice in 2024, despite awareness of fraud including from foreign sources.