Texas Attorney General Ken Paxton has filed a sweeping lawsuit accusing Democrat fundraiser ActBlue of deceptive practices and systemic donor fraud.

The lawsuit represents a convergence of legal, congressional and media scrutiny tightening around the liberal party’s online fundraising platform, as new reporting and Congressional investigations raise questions about foreign donations and dark money.

“The radical left has relied on ActBlue as a way to funnel foreign donations and dark money into their political campaigns to subvert our laws and compromise the integrity of our elections,” said Paxton about the lawsuit.

Meanwhile, the House Judiciary Committee released a scathing report that “details the mass exodus of the Democrat fundraising platform’s legal and compliance teams in the months following the 2024 election.”

The committee claims the exits were an attempt to cover up illegal acts.

“ActBlue appears to have accepted illegal foreign donations en masse and tried to cover it up, lying to and withholding information from Congress in the process,” said the committee.

The committee said ActBlue’s former vice president of customer service, its former general counsel and three lawyers with direct knowledge of ActBlue’s operations refused to answer a single one of the 146 questions posed to them by the committee.

The employees, who were under subpoena, all invoked their Fifth Amendment right against self-incrimination.

Paxton then filed suit in Tarrant County District Court, armed with the congressional findings and something more.

His own investigators caught ActBlue in the act, according o the Texas suit, which alleges that on Feb. 19, an investigator from the Office of the Attorney General donated five dollars to the Democratic National Committee through ActBlue using a physical gift card purchased with cash under a false identity.

The transaction went through without a problem.

Two additional successful test donations using gift cards followed days later.

This after ActBlue told Congress it stopped accepting gift cards.

“ActBlue lied to Congress and, knowing that Congress had informed the public of its change of policy, lied to the public,” says the lawsuit. “When the scrutiny had faded, ActBlue went right back to business as usual.”

At the same time the Democrat online fundraiser dismissed reports that it was improperly supervising donations by calling such concerns “bogus claims.”

ActBlue called the questions about fundraising “partisan attacks trying to stifle Democratic and progressive fundraising.”

“These conspiracy theories have been repeatedly debunked by experts and have no basis in reality,” said the progressive platform, which labeled the investigations “misinformation.”

Campaign finance experts, including a former FEC enforcement attorney have said these claims are unsubstantiated and the result of misreading FEC data, said the donor site.

However, a New York Times investigation subsequently found what was happening inside ActBlue was out of the ordinary.

Departing officials who talked to the newspaper said the fundraiser was being “gravely mismanaged.”

ActBlue’s outside counsel Covington and Burling delivered two private memos to the organization in early 2025, according to the Times report published in early April.

The memos warned that CEO Regina Wallace-Jones may have misled Congress in her 2023 letter about foreign donation vetting.

Covington concluded there was a substantial risk ActBlue had accepted impermissible foreign contributions by not always following the vetting procedures.

Worse, the violations could be deemed “knowing and willful,” opening the door to a criminal Justice Department investigation, said the report.

The memos triggered a leadership “meltdown,” noted the Times.

ActBlue fired its general counsel, while a second lawyer resigned.

A whistleblower had his computer access revoked within hours of forwarding the memos to the board. Other resignations followed.

Yet, ActBlue ultimately decided not to correct the record with Congress.

Worst of all, the online donation processor purposely followed loosened standards to make fraudulent donations easier, not more difficult, the Texas lawsuit claims.

The suit said that not only were federal election laws violated because of these deliberate policies, but Texas consumer fraud laws were also violated.

The state alleges that ActBlue misled donors and campaigns by falsely claiming its platform was secure and compliant with election laws, while knowingly facilitating fraudulent donations.

The totality of the acts show that the Democrat platform “has already proven it cannot be trusted to police itself,” said the petition.

“Only this Court can stop it,” the lawsuit added.