Texas attorney general opens investigation into Media Matters for 'potential fraudulent activity'

EXCLUSIVE—Texas Attorney General Ken Paxton is opening an investigation into Media Matters for "potential fraudulent activity" after X CEO Elon Musk accused the left-wing media watchdog group of manipulating data on the social media platform. 

After a slew of advertisers, including IBM, Apple, Disney, Lionsgate and Paramount, fled X, formerly known as Twitter, Musk pledged to hit the watchdog group with a "thermonuclear lawsuit." 

Media Matters published a report on Friday accusing X of placing ads next to "white nationalist hashtags." However, Musk believes that the group "completely misrepresented the real user experience" in order to mislead advertisers. 

MUSK THREATENS 'THERMONUCLEAR LAWSUIT' AGAINST MEDIA MATTERS

Republican Missouri Attorney General Andrew Bailey posted on Sunday that his legal team was "looking into" the matter. Now, Paxton is launching an official investigation with his office after being "extremely troubled" by the allegations. 

"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. 

"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 the Texas Attorney General’s office. 

MUSK RESPONDS TO ACCUSATIONS OF ANTISEMITISM: 'NOTHING COULD BE FURTHER FROM THE TRUTH'

Last week, Musk found himself in hot water after commenting on a post on X that critics believe was anti-Semitic. Since then, the tech billionaire has clarified that anyone posting genocidal content will be suspended from X.

"At risk of stating the obvious, anyone advocating the genocide of *any* group will be suspended from this platform," Musk wrote in a post on X. 

"As I said earlier this week, ‘decolonization’, ‘from the river to the sea’ and similar euphemisms necessarily imply genocide. Clear calls for extreme violence are against our terms of service and will result in suspension," Musk wrote.

Nonetheless, the White House spokesman Andrew Bates condemned Musk, saying that the people's house condemns "abhorrent promotion of Antisemitic and racist hate in the strongest terms, which runs against our core values as Americans."

CLICK HERE TO GET THE FOX NEWS APP

This is not the first time advertisers vacated the social media platform. Last year, when Musk first took over Twitter, now known as X, he promised to restore free speech to the platform. In response, hundreds of advertisers pulled their ads. 

Now, the CEO is hoping to uncover the truth behind the Media Matters report, saying "the discovery and depositions will be glorious to behold." 

Media Matters did not immediately respond to Fox News Digital's request for comment.