REPORT: Infamous Left-Wing Media Group Is On The Verge Of Bankruptcy

Media Matters, the far-left, self-styled media watchdog group aimed at monitoring “conservative misinformation,” is reportedly on the verge of bankruptcy due to a number of lawsuits filed by the federal government, tech billionaire Elon Musk and others.

The organization, which has long been funded by some of the Democratic Party’s biggest donors, has racked up more than $15 million in legal fees over the last several months in order to defend itself against several lawsuits, according to a report from the New York Times. Among the entities pursuing legal action against Media Matters include the Federal Trade Commission, a number of state attorneys general and Elon Musk.

As a result, the group has been forced to reduce the size of its staff, documents and 11 people familiar with the matter informed The Times. Executives have also been scrambling to raise cash from increasingly skeptical donors.

Elon Musk’s X corp filed a lawsuit against Media Matters in the U.S. District Court for the Northern District of Texas back in November of 2023. The suit claims that the left-wing group defamed X by publishing a report alleging that advertisements from major brands, such as Apple, IBM, and Oracle, appeared next to pro-Nazi and antisemitic content on the platform.

X alleges that Media Matters “knowingly and maliciously” manipulated its algorithm by using test accounts that followed specific users and repeatedly refreshed feeds to generate images of ads next to extremist content, misrepresenting the typical user experience.

According to the report, Media Matters has offered to settle with Musk on numerous occasions by “offering concessions,” though the two sides remain “far apart” and the most recent settlement talks fizzled out.

With legal fees mounting, the organization has considered shutting down as a “last resort,” according to interviews and an internal document shared with the New York Times. Publicly, the group has claimed that it has no intention of closing and remains committed to fighting the lawsuits.

“Unlike some major media entities that have recently caved to pressure, we understand that this battle is larger than us,” Angelo Carusone, the president of Media Matters, said in a statement. “That’s why we continue to carry out our mission and fight in court.”

Despite the public denials, insiders have conceded that Media Matters has scaled back its work and is being “frozen out” by some allies. “And it has faced plummeting staff morale, rising infighting and security concerns,” the New York Times reported.

The deteriorating financial situation marks a massive fall from grace for the once powerful organization, which was used to silence many conservative organizations, politicians and media outlets over the last two decades. Founder David Brock employed the strategy of organizing advertiser boycotts targeting talk radio hosts, Fox News and more, describing his tactics as “guerrilla warfare and sabotage.”

In the two decades between its creation in 2003 and the end of 2023, Media Matters raised nearly $250 million and established itself as a force within left-wing politics.

Media Matters is made up of two separate nonprofits registered under sections of the tax code — one for charities and the other for social welfare groups — that allow them to accept contributions without publicly disclosing donors’ identities, otherwise known as dark money. Disclosed donors include the Soros network, clothing entrepreneur Susie Tompkins Buell and hedge fund manager Stephen F. Mandel Jr.

Now, the organization finds itself between a rock and a hard place, as executives will need to decide whether to fight the legal action despite dwindling cash flows, or agree to settlements and lose prestige. The parent companies of ABC and CBS News recently agreed to pay hefty settlements with President Donald Trump over false or inaccurate reporting in cases similar to those brought against Media Matters.

The Global Alliance for Responsible Media, a nonprofit group, shut down last year rather than defend itself against a similar lawsuit brought by Elon Musk’s X.

Some Media Matters insiders have pushed for declaring bankruptcy or making concessions in order to settle their own lawsuit with Musk, the New York Times reported. In addition to the suit in U.S. federal court, X has filed lawsuits against the organization in Ireland and Singapore. When a court ruled that the Ireland suit should be discontinued and another ruled that the Singapore one should be paused, Musk’s firm appealed, further exhausting Media Matters’ limited resources.

As the case drags on, the organization has racked up more than $4 million in legal debt with Elias Law Group, which was founded by infamous Clinton lawyer Marc Elias. The legal group offered to wipe away a little more than half of the debt if Media Matters agreed to a payment plan, though it also vowed to pursue the full amount if an agreement was not reached.

This reportedly enraged Media Matters’ lead fundraiser Mary Pat Bonner, who lashed out at the firm in a fiery email. “You must be kidding!!” Bonner wrote to the firm. “This is how you treat people who have been clients for 16 years and are friends?”

As executives continue to claim that all is well, an internal memo obtained by the New York Times confirmed that the group is indeed considering the possibility of shutting down. Major donors suggested the same at a fundraising meeting in Connecticut last year, placing the group’s future in further jeopardy.