WASHINGTON (CN) - Media Matters sued the Trump administration on Monday over a Federal Trade Commission investigation into the progressive watchdog regarding its reporting on an increase in white nationalist and antisemitic content on X after Elon Musk's takeover. 

The suit, filed in the U.S. District Court for the District of Columbia, comes just three weeks after the D.C. Circuit enjoined a near-identical investigation by Texas Attorney General Ken Paxton, finding it was unlawful retaliation under the First Amendment. 

A federal judge enjoined another investigation launched by Missouri Attorney General Andrew Bailey, leading to a settlement where Bailey agreed to drop the probe and admitted he found no evidence the watchdog had violated any state laws. 

Under President Donald Trump, the federal government has engaged in a campaign of retribution against law firms, major media outlets, universities, cultural institutions and public media organizations "deemed to be disloyal," Media Matters said, with the FTC probe just the latest example. 

"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," Media Matters President Angelo Caruso said in a statement. "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."

Andrew Ferguson, the new FTC chairman, initiated the investigation on May 20 by issuing a civil investigative demand - a type of subpoena commonly referred to as a CID and the same issued by Paxton - seeking documents and communications related to Musk and the discovery exchanged in recent lawsuits between Media Matters and X. 

Ferguson, the watchdog argues, is targeting the group out of personal animus, having had his candidacy booted by Trump adviser Mike Davis, who called Media Matters a "cancer to free speech" and proposed throwing its reporters "in the DC gulag" on X in recent years.

"The FTC's new chairman, Andrew Ferguson, auditioned for his role by endorsing antitrust investigations of any groups connected to what he claimed were 'advertiser boycotts' of X," Media Matters said. "After taking over as FTC Chairman, Ferguson hired three senior officials who had attacked Media Matters on X, including Chairman Ferguson's Senior Policy Adviser [Jon Schweppe], who called Media Matters 'scum of the earth.'"

According to the watchdog, the CID seeks Media Matters' finances, editorial process, news gathering activities and affiliations with similar organizations that monitor extremist content online. The CID seeks broader topics with a timeframe three times larger than Paxton's "sweeping" CID, Media Matters added. 

The CID fails to explain what conduct the FTC was investigating or what federal law may have been violated, as the commission is required to do under its limited statutory authority. 

Further, the FTC is barred from enforcing antitrust laws against nonprofits like Media Matters, the watchdog argued. 

On May 30, a three-judge panel upheld a preliminary injunction blocking Paxton from subpoenaing the watchdog, finding the investigation was retaliatory and chilled the company.

As part of the probe, Paxton issued a CID to the organization, seeking documents related to X, Musk or X CEO Linda Yaccarino. Paxton claimed Media Matters had engaged in fraud against X and violated Texas law. 

Media Matters objected to Paxton's demand as an infringement on its free speech and press rights before filing its initial suit, in which U.S. District Judge Amit Mehta granted a preliminary injunction barring Paxton from enforcing the demand. 

At the D.C. Circuit, Paxton argued that as a state attorney general, the Washington courts had no jurisdiction over him in the case. 

The appeals panel, made up of Senior Circuit Judge Harry T. Edwards and Circuit judges Florence Pan and Karen Henderson, rejected that argument. 

Stephen Anthony, of Covington Burling and representing Media Matters, requested a federal judge declare the FTC's conduct as clear retaliation under the First Amendment and block the enforcement of the CID or any further unlawful investigations. 

"This court should see the FTC's follow-on investigation for what it is: another 'use [of] law enforcement machinery for political ends,' which is 'the most heinous act in which a democratic government can engage,'" Media Matters said. "The court should put an end to the latest effort by the Trump administration and Elon Musk's government allies to punish, intimidate and harass Media Matters for publishing reporting they do not like."

Source: Courthouse News Service