Media Matters claims FTC is engaging in ‘ongoing campaign of retribution’ in investigation into alleged collusion with advertisers

The lawsuit, filed in the US District Court for the District of Columbia on Monday, claimed that "Media Matters faces an ongoing campaign of retribution for exercising its First Amendment rights. For the third time, Media Matters must ask this Court to halt this 'government campaign of retaliation.’"

The liberal watchdog group claimed that the FTC "seeks to punish Media Matters for its journalism and speech in exposing matters of substantial public concern—including how X.com has enabled and profited from extremist content that proliferated after Elon Musk took over the platform formerly known as Twitter. The campaign of retribution against Media Matters must stop."

Media Matters claimed that it "truthfully reported that ads appeared next to pro-Nazi content on X.com." That reporting became the center of a legal battle, after owner Elon Musk vowed to launch a "thermonuclear lawsuit" against the watchdog group. Musk said that Media Matters had "completely misrepresented the real user experience on X, in another attempt to undermine freedom of speech and mislead advertisers."

Missouri Attorney General Andrew Bailey, as well as Texas Attorney General Ken Paxton, opened investigations into the matter, and in late May, the FTC launched its own probe into the matter. Ultimately, the matter was settled out of court in the Missouri case, and the DC District Court has upheld a preliminary injunction against Texas’ investigation.

"Elon Musk and his allies targeted Media Matters for having the temerity to report the undeniable fact that X ran advertisements next to extremist content. In response to this truthful and constitutionally-protected journalism, Media Matters has faced an onslaught of government investigations as well as civil suits by X itself seeking to destroy the organization. But the Constitution prevents the government from punishing the exercise of free speech, as state governments and now a federal agency have employed sweeping governmental powers to attempt to silence and harass an organization for daring to speak the truth," the lawsuit stated.

Media Matters claimed that the FTC "has opened an investigation to harass Media Matters in retaliation for its journalism," and that the civil investigative demands issued to Media Matters on May 20 "makes no secret of its connection to Musk’s vindictive lawsuits."

The lawsuit accuses the FTC of "retaliation in violation of the First Amendment" and "Improper investigation in violation of the First and Fourth Amendments."

Angelo Carusone, Chairman and President of Media Matters, said in a statement, "The Trump administration has demonstrated that it will not hesitate to abuse the powers of the federal government to undermine the First Amendment and stifle dissent. This highly politicized FTC investigation is part of that playbook. This is a significant free speech issue, and Media Matters will not back down from this fight. If the Trump administration is allowed to use this unlawful investigation to punish legitimate reporting on behalf of a political ally, then there is nothing to stop it from targeting anyone who stands up and exercises their rights."

He added, "Elon Musk has made clear he wants to destroy Media Matters, and by launching this investigation his allies in the Trump administration are helping do his dirty work. Nothing less than the right of every American to exercise their First Amendment right to speak truth to power is at stake in this case."