US appeals court rules for watchdog Media Matters in fight over Texas subpoena

By Mike Scarcella

May 30 (Reuters) - A U.S. appeals court on Friday rejected Texas Attorney General Ken Paxton's demand for internal records from liberal watchdog group Media Matters, calling the state’s probe a retaliatory campaign against the nonprofit.

In its ruling, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit upheld a lower judge’s order that blocked a Texas subpoena for financial records and other information from Media Matters.

“Tellingly, Paxton has not offered any argument to dispute that the investigation was retaliatory,” Circuit Judge Harry Edwards wrote. Edwards called the Paxton probe “an arguably bad-faith investigation.”

Texas launched its investigation of Media Matters in late 2023, immediately after Elon Musk’s social media platform X sued the organization in federal court.

In that ongoing lawsuit, X alleges that Media Matters defamed it in a report that said major advertisers’ brands had appeared next to right-wing extremist content. Media Matters has defended its reporting.

The Texas attorney general’s office did not immediately respond to a request for comment on Friday's ruling.

In a statement, Media Matters president and chief executive Angelo Carusone called the court’s decision a victory for free speech.

A lawyer for Media Matters, Aria Branch, said the D.C. Circuit’s decision should warn state attorneys general that "any attempt to intimidate and harass through baseless investigations will be met with decisive rejection from the courts."

Texas sought financial records in its request to Media Matters, in addition to communications with major corporate advertisers and X employees.

The U.S. Federal Trade Commission recently indicated it is also investigating Media Matters, according to a document seen by Reuters.

The FTC, in a civil investigative demand, asked Media Matters to hand over any communications it had with other groups that evaluate misinformation and hate speech in news and social media.

Carusone blasted the FTC probe in a prior statement and said the Trump administration has abused “the power of the federal government to bully political opponents and silence critics." A spokesperson for the FTC declined to comment on the Reuters report.

The case is Media Matters for America et al v. Texas Attorney General Warren Kenneth Paxton Jr, U.S. Court of Appeals for the D.C. Circuit, No. 24-7059.

For Media Matters: Aria Branch of Elias Law Group

For Paxton: Lanora Pettit of the Texas attorney general’s office

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