Texas Attorney General Ken Paxton announced Monday he is opening an investigation into the left-wing watchdog group Media Matters for publishing a report that said the social media platform X was placing pro-Nazi content next to ads.
The repercussions to X were felt immediately after major advertisers such as Apple, Disney, IBM, Lionsgate, and Paramount dropped their advertisements, prompting X CEO Elon Musk to file a lawsuit against the group.
"We are examining the issue closely to ensure that the public has not been deceived by the schemes of radical left-wing organizations who would like nothing more than to limit freedom by reducing participation in the public square," said Paxton.
The advertising fallout from the Media Matters allegations was compounded by Musk making comments last week which critics believed were anti-Semitic. Musk then clarified that anyone posting genocidal content would be suspended from X, but Media Matters published a report the next day saying pro-Nazi content and white nationalist hashtags had run next to ads from major companies.
The attorney general's office said it is "extremely troubled by the allegations that Media Matters, a radical anti-free speech organization, fraudulently manipulated data on X.com (formerly known as Twitter)."
Musk said he believed the group "completely misrepresented the real user experience" in order to mislead advertisers, according to multiple media reports.
"Under the Texas Business Organizations Code and the Deceptive Trade Practices Act, the OAG will vigorously enforce against nonprofits who commit fraudulent acts in or affecting the state of Texas," said Paxton.
Media Matters has not yet responded to Musk's lawsuit or the Texas attorney general's investigation announcement.
